US President Donald Trump hinted that the military conflict with Iran is now nearing an end, but with a more aggressive phase of attacks in the near future.
The statement immediately triggered a swift reaction in the market, seeing oil prices surge past the psychological level of $100 a barrel, while Bitcoin slipped.
At the time of writing, the price of Bitcoin is currently at $66,590, up 0.13% since it opened in early trading Thursday in the Asian session.
In his speech, Trump stated that the US military operation has almost achieved all its main objectives and warned that a "very strong" attack will be launched in the next two to three weeks if no deal is reached.
The assertive tone increased investor concerns about geopolitical risks, thus pushing oil prices to around $103.59 a barrel.
At the same time, Bitcoin fell about 2%, reflecting cautious sentiment among investors towards riskier assets.
These tensions cannot be separated from the situation in the Strait of Hormuz, a vital route for world oil shipments that Iran has previously blocked.
Disruptions to this route have a major impact on global supplies, making oil prices very sensitive to any developments in the conflict.
Although Trump had previously hinted that the war might end soon, his latest statements clearly changed market expectations.
However, despite the harsh rhetoric, negotiations between the two sides are still ongoing.
The United States demands that Iran halt its nuclear program and reopen trade routes, while Iran wants a complete end to the war and compensation.
Trump also expressed confidence that the blockade of the Strait of Hormuz will end naturally when the conflict subsides, thus allowing oil prices and financial markets to return to stability.
