President Donald Trump's weekend warnings of possible US strikes on Iran have set crypto markets on edge, with traders bracing for a risk-off Monday open. Bitcoin hovered near $78,312, down 4% for the week, while Ether fell 7.5% to around $2,188. The geopolitical tension, coupled with threats of escalation via Trump's Truth Social posts, has fueled fears of an oil shock via the Strait of Hormuz, which could push crude prices to $165 per barrel. Analysts warn that higher oil would exacerbate US inflation, delay Federal Reserve rate cuts, and historically weigh on Bitcoin. A Tuesday Situation Room meeting with top national security officials is expected to review military options. Some traders remain skeptical of a sustained sell-off without a rise in Treasury yields, but overall sentiment is cautious.

Key facts

• Bitcoin near $78,312, down 4% weekly; Ether at $2,188, down 7.5%.
• Trump warns Iran via Truth Social: 'Clock is Ticking' for a deal.
• Tuesday Situation Room meeting on military options expected.
• Strait of Hormuz disruption could push oil to $105-165 per barrel.
• Higher oil may delay Fed rate cuts, historically weighs on Bitcoin.

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