The US-Iran war is rapidly escalating as the United States issues one of the strongest warnings yet to Iran. Donald Trump has warned Iran to accept defeat or risk being “hit harder than ever.” Amid these increasing tensions, the crypto market and oil prices are under pressure. As oil prices continue to surge, digital assets see sharp declines.
US–Iran War Deepens as Trump Warns Tehran
In the latest developments within the US-Iran war, Donald Trump has warned Iran to accept defeat or face even stronger attacks. This indicates that the US is taking a more aggressive stance in the ongoing conflict.
White House press secretary Karoline Leavitt stated that President Trump is prepared to “unleash hell” if Iran does not accept its military defeat. She added,
“If Iran fails to accept the reality of the current moment, if they fail to understand that they have been defeated militarily, and will continue to be, President Trump will ensure they are hit harder than they have ever been hit before.”
This warning comes after Iran rejected calls for talks and vowed to continue its retaliation. However, reports state that Iran is still reviewing the US’s proposal to end the war. This suggests that Tehran has not completely rejected the plan yet. “Talks continue. They are productive, as the president said on Monday, and they continue to be,” stated Leavitt.
Trump Claims Iran Is Secretly Engaging in Talks
While Iran publicly rejected negotiations, Donald Trump states the country is still in talks behind the scenes. He claimed Iranian officials want a deal but are afraid to admit it, fearing backlash from their own people or possible consequences from the US. White House says that the US is preparing for a peace talk this weekend. Trump added,
“They are negotiating, by the way, and they want to make a deal so badly. But they’re afraid to say it, because they figure they’ll be killed by their own people. They’re also afraid they’ll be killed by us.”
Are Crypto and Oil Prices at Risk?
As the US-Iran war deepens, uncertainty is driving oil prices higher while risk assets like cryptocurrencies continue to fall. The crypto market is down by 1.7%, hitting $2.39 trillion. As CoinGape reported, Bitcoin slipped today when Trump expressed his wish to end the war soon.
Currently, the oil price is at $93, up by 3.6% in a day. However, analysts say that the oil market has entered the “backwardation” phase. This means that the prices already include a risk premium due to the conflict, even though many traders still expect the situation to be resolved quickly. Toni Meadows, head of investment at BRI Wealth Management, stated,
“That backwardation — lower prices in the future compared to now — is indicating that the market thinks this current uplift in the oil price is transitory…So it’s an event, rather than something that stays with us. Otherwise, you’d be paying more for future deliveries because of scarcity of supply. So, yes, there’s an issue now due to the fighting, but the expectation is that there will be some resolution.”
The crypto market has also shown positive reactions when Iran hinted at a ‘full end’ to the war. While Tehran rejected Trump’s ceasefire proposal, the country stated that it needs to end the US-Iran war completely. In response, the crypto market exhibited positive signals.
