Bitcoin Pares Gains as Iran Retaliates to US Strikes on Larak Island, Oil Prices Rise

Bitcoin pared recent gains and slipped toward $77K lows as Iran retaliated against US strikes on Larak Island. Meanwhile, oil prices jumped more than 2% today amid a fresh escalation in the US-Iran war.

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Oil Prices Climb as Iran launches Strikes on US Forces in Middle East

US forces struck IRGC’s two missile launchers on Larak Island in the Strait of Hormuz, marking the first attack on Iran since late July. President Donald Trump said last week that all mines were removed and any ship or boat placing new mines will be “immediately and systematically destroyed.”

According to U.S. Central Command (CENTCOM), Iran’s claim of U.S. strikes as an “act of aggression” is false. “US forces took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz,” CENTCOM added.

In retaliation, Iran launched multiple ballistic missiles on multiple US bases across the Middle East. No significant impacts have been reported so far, and nearly all incoming missiles have been intercepted, according to Fox News.

Brent crude futures jumped more than 2% to trade above $90 per barrel on Monday. WTI crude oil prices also surged more than 2% to above $85.50.

As CoinGape reported last week, Goldman Sachs noted that oil flows through the Strait of Hormuz recovered to around two-thirds. Bitcoin recovered above $79K on the news, but recent developments have sparked jitters among traders.

Following tonight’s round of reciprocal U.S.-Iran strikes, that saw the U.S. target two Iranian mine-laying MLRS systems and Iran target U.S. bases and infrastructure in Jordan, U.S. President Donald J. Trump posted a number of AI videos depicting Iran’s Kharg Island being… pic.twitter.com/49dmpP31zR

— OSINTdefender (@sentdefender) August 31, 2026

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Bitcoin Price Slips Toward $77K, But Open Interest Rising

Bitcoin fell more than 2% to a low of $77,161 amid renewed US-Iran war jitters. The price is currently trading at $77,813, with a 50% rise in trading volume over the last 24 hours.

Prices slipped from $80K after Fed Chair Kevin Warsh signaled inflation is still high. The 10-year US Treasury yield moved around 4.7% on Monday after rising for three consecutive sessions. The US dollar index (DXY) also climbed to trade around 99.6 on Monday amid Fed rate hike concerns.

CoinGape’s Bitcoin price prediction indicates BTC needs to break above $81,800 to target $85,000. Losing $75,000 support could expose Bitcoin price to the $70,000 target.

The derivatives market showed buying in the last few hours, as per CoinGlass data. At the time of writing, the total Bitcoin futures open interest jumped 0.65% to $53.88 billion in an hour. The 24-hour BTC futures OI was down almost 0.63%. Notably, Bitcoin futures OI on CME, Binance, and Hyperliquid are rising in the last few hours.

Polymarket data shows prediction market participants expect Bitcoin price to reach $85,000 by December 31, 2026, with 68% ‘Yes’ bets.