Bitcoin Under Pressure as Iran Strikes US Warships in Retaliation for Seized Cargo Ship

Bitcoin is under selling pressure as oil prices jump more than 6% on Monday amid Middle East tensions. Iran launches drone strikes on US warships in response to the US Navy striking and seizing an Iranian cargo ship defying the blockade. This triggered a rise in global market uncertainty, while the US and Iran prepare for peace talks.

Iran Launches Drone Strikes as US Navy Seizes Iranian Cargo Ship

Iranian forces launched drone attacks on US warships in the Gulf of Oman, escalating the Middle East tensions. Iran’s state-run Tasnim news agency, affiliated with the Islamic Revolutionary Guard Corps (IRGC), claims the attack happened in retaliation for the U.S. Navy attacking the Iranian-flagged Touska cargo ship.

This incident represents a significant breach of the ceasefire and raised fears of a wider conflict around the Strait of Hormuz. As a result, crude oil prices surged more than 6% toward $89 per barrel on April 20, reversing losses from the previous sessions.

President Donald Trump said the ship tried to pass through a US blockade of the Strait of Hormuz. After hours of ignored warnings, the USS Spruance fired at the ship’s engine room to disable it. US Marines then boarded and took control of the cargo ship traveling from China to Iran.

Trump wrote on Truth Social that ” it did not go well for them” after ignoring warnings. The US said the operation was meant to enforce a blockade and limit Iranian activity. Iran called the action “armed piracy” and said it violates the ceasefire.

Bitcoin slips and US stock market futures open sharply lower today as US-Iran war peace talks stall and Iran closes the Strait of Hormuz. Trump said the US and Iran would meet for peace talks in Pakistan on Monday, but Iran is still reluctant to send a negotiation team.

Bitcoin Drops amid Retaliatory Attacks

Bitcoin plunged nearly 2% as investors weighed a bigger conflict, higher oil prices, and possible delays in Fed rate cuts. The price is trading near $74,400 after falling from $78,000, with a 24-hour low of $73,775.

Popular analyst Cheds Trading revealed that BTC is now pressing lower Bollinger bands in the 4-hour chart. Further selling pressure could result in deeper pullbacks in Bitcoin.

CoinGlass data showed mixed sentiment in the derivatives market. The total Bitcoin futures open interest jumped more than 2% to $54.96 billion in the last 24 hours. The 4-hour BTC futures OI on CME and Binance are down 0.15% and 0.1%, respectively.

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