President Donald Trump met with top national security officials in the White House Situation Room on Tuesday to discuss a 'massive offense' against Iran, Axios reported. The new strategy calls for strikes with a wider scope than current operations, which have mostly been confined to the Strait of Hormuz region. The meeting came just as Bitcoin had climbed to a multi-week high of $65,000 on lower-than-expected US CPI data — but analysts warn that an escalation with Iran could erase those gains fast.
Inside the Situation Room
Vice President JD Vance, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, CIA Director John Ratcliffe, and envoy Steve Witkoff were among those in the room. According to Axios, one major conclusion of the meeting focused on plans for 'devastating strikes on strategic targets in Iran.' Trump himself warned that Iran should 'better make a deal' or they're 'not going to have anything left.'
The current US campaign has been hitting Iranian-linked assets around the Strait of Hormuz, but the new plan would expand the target set significantly. No timeline for the strikes was disclosed.
Bitcoin's CPI-fueled bounce
Bitcoin had slumped below $58,000 for the first time in almost two years on July 1. Then came June's CPI print — lower than expected — and the price shot up to $65,000, a multi-week peak. The rally was a relief for traders who'd been watching the market bleed through June.
But the macro picture just got a lot more complicated. The same inflation data that boosted risk assets also gives the Fed room to hold rates steady, which is usually good for crypto. War, however, is a different beast.
The Iran risk premium
History shows that negative developments on the war front tend to crash Bitcoin and send oil prices surging. If the US follows through on the 'massive offense' and Iran retaliates — whether by striking US allies, disrupting shipping, or launching cyberattacks — Bitcoin could give back all of its recent gains, the article notes.
The timing isn't great. Crypto markets were just starting to recover from a brutal June. A new Middle Eastern conflict would inject uncertainty that risk-on assets hate. Oil prices, already elevated, would likely spike further, complicating the Fed's inflation fight.
Next moves
No decision has been announced on when the wider strikes would begin. But the administration's posture is clear: Trump wants a deal, and he's willing to escalate to get one. For Bitcoin holders, the next few days are critical. If Iran retaliates, the $65,000 level could be a distant memory.
