Crypto markets rebounded Tuesday morning even as traditional assets faltered, with oil surging on reports that Gulf states could join the conflict with Iran.
Bitcoin climbed 3.1% to roughly $70,352, recovering from weekend lows below $68,000, while ether, solana, dogecoin, and XRP gained between 2% and 4%.
The rally followed a report from The Wall Street Journal that Saudi Arabia had agreed to allow U.S. forces access to King Fahd Air Base, reversing its previous opposition to military strikes on Iran. The United Arab Emirates has reportedly made similar arrangements.
Direct involvement by Gulf allies would mark a major escalation, expanding the conflict from a U.S.-Israel operation into a wider regional coalition—well beyond what markets had been pricing in.
Iran signaled no willingness to negotiate, reinforcing Monday’s denials reported by Fars News Agency. The Strait of Hormuz remains largely closed, with only minimal shipping passing through.
Global markets reacted quickly. S&P 500 futures fell 0.5%, European equities were set to open 0.8% lower, Brent crude surged 4% to around $104 per barrel, the U.S. dollar rose 0.3%, and gold dropped 1.5%, extending its longest daily losing streak on record.
Gold’s steep decline is unusual for a traditional safe-haven amid a widening conflict. Analysts suggest forced selling from funds facing margin calls may be driving the drop, underscoring bitcoin’s relative stability—holding steady while gold tumbles.
The five-day window set by Donald Trump for Iran expires Saturday, but the potential entry of Saudi Arabia and its allies shifts the calculus. A broader regional conflict would put Gulf energy infrastructure at higher risk and could intensify market volatility.
For now, bitcoin remains above $70,000 even as other assets weaken, leaving the market to see whether the crypto’s resilience will hold or if the next headlines will drive another round of volatility.
