Trump Iran war declaration talks are ongoing. The president is privately discussing this with senior aides.
Bitcoin recovered modestly in early Thursday trading. Oil prices also slipped lower.
Why Trump Iran war declaration matters
The Wall Street Journal reported the discussions on September 3. Trump told aides he favors the idea. US officials said the president believes continued economic pressure will force Iran’s regime to either dismantle its nuclear program or collapse.
Aides have reportedly warned against further escalation. This could harm Republican prospects in the midterm elections. Trump is going all-in for the final push. He will personally campaign in 35 key races.
Fresh strikes continue across the Middle East. Iran launched retaliatory missile and drone attacks on US forces. This included a reported strike on facilities in Kuwait. Fighting continues near the Strait of Hormuz.
Iranian forces claimed hits on multiple US bases. Nevertheless, the US has not responded to last night’s attacks. This kept Bitcoin higher. The White House is concerned about surging oil prices. Interceptor stockpiles are “close to zero.”
Secretary of State Marco Rubio ordered US embassies worldwide to demand governments cut trade with Iran. This order was “immediately and systematically.”
Trump told reporters this week that a renewed campaign “won’t continue for too long.” The US-Iran war began with US and Israeli strikes in late February. Repeated ceasefire attempts and interim deals have failed.
Bitcoin rises amid focus to control rising oil prices
Oil prices rose quickly amid recent strikes. WTI crude oil traded under $91 per barrel. Brent crude oil held around $95 per barrel on Thursday. Prices slid only slightly amid Trump discussions.
Higher oil prices sparked concerns over inflation. A potential Fed rate hike also worried traders. Nevertheless, Bitcoin rebounded back above $77,000. New York Fed President John Williams sees a lowering inflation trend. This eased rate hike concerns.
He said Treasury yields are rising primarily due to a strong US economy. Massive investments in AI and technology also contributed. Inflation concerns were not the main driver.
Bitcoin price is trading around $77,730. It is up more than 1% in the last few hours. The intraday low was $76,297. The high reached $77,830. Trading volume has dropped 12% over the past 24 hours. This is ahead of Friday’s Non-Farm Payrolls data.
Polymarket data shows prediction market participants still see Bitcoin reaching $85,000. This is by December 31, 2026. The odds are 63% ‘Yes’ bets.
