Oil Surges Above $90, Bitcoin Pulls Back Amid Iran Conflict Expansion

Alphabet’s latest quarterly results delivered a mixed signal for investors. While the company exceeded revenue expectations, its decision to further increase artificial intelligence spending plans sparked concerns over rising costs, causing shares to fall about 6%.

The company lifted its expected AI-focused capital expenditure for 2026 to between $195 billion and $205 billion, up from its previous forecast of $180 billion to $190 billion. Alphabet also suggested that investment in AI infrastructure could continue growing significantly in 2027 as demand for computing power accelerates.

The increased spending outlook put pressure on other major technology firms benefiting from the AI boom. Meta and Amazon shares declined roughly 3%, while Apple dropped 1.75% and Microsoft edged down 0.5%.

On the other hand, businesses supplying the AI infrastructure expansion gained ground. Former Bitcoin mining companies that have shifted toward artificial intelligence data centers and high-performance computing saw strong gains. Cipher Mining, Riot Platforms, and Hut 8 rose around 7%, while TeraWulf, Keel Infrastructure, and IREN advanced between 3% and 4%.

In the crypto sector, BitMEX co-founder Arthur Hayes reacted to the exchange’s planned closure, expressing appreciation for employees, partners, and users. Hayes said BitMEX had built something special and would shut down responsibly after years of operation. He co-founded the derivatives exchange in 2014 but has not managed its day-to-day activities for several years.

Markets were also impacted by rising geopolitical tensions after Iran-backed Houthi forces reportedly targeted Saudi oil tankers. Former U.S. President Donald Trump warned that additional attacks could lead to retaliation against Iran and the Houthis.

The developments pushed oil prices nearly 5% higher, lifting crude above $90 per barrel. Meanwhile, Nasdaq 100 futures declined 1.3%, and Bitcoin slipped toward its session low near $65,100.

The European Central Bank left interest rates unchanged but maintained a cautious inflation outlook, noting that the full effects of the recent energy price shock have yet to be reflected.

U.S. economic data added further pressure on markets as weekly jobless claims dropped to 187,000, significantly below the 212,000 forecast. The unexpectedly strong figure increased speculation that the Federal Reserve could take a more aggressive stance on rates.

The 10-year U.S. Treasury yield climbed five basis points to 4.71%, reaching its highest level of the year. Investors now see nearly a 40% chance of a Fed rate hike at the upcoming meeting, compared with minimal expectations just days earlier.

In crypto regulation news, Goldman Sachs CEO David Solomon backed the Clarity Act, saying clearer digital asset rules could improve market stability and encourage innovation. His remarks came as lawmakers prepared updated versions of the bill ahead of a possible Senate vote.

Bitcoin’s future security also drew attention following the launch of the Bitcoin Security Consortium, an industry-backed initiative focused on protecting the network against emerging threats. The group has secured $15 million in commitments over three years from major crypto and financial companies.

Elsewhere, UK-based Bitcoin treasury firm The Smarter Web Company sold around 178 BTC, raising approximately $11.7 million to repay convertible debt. The company now holds about 2,700 BTC, highlighting a broader trend of corporate Bitcoin holders adjusting their strategies.

Despite recent volatility, institutional demand for Bitcoin remains strong. U.S. spot Bitcoin ETFs attracted nearly $1 billion in inflows over a seven-day streak, with about $500 million entering funds during the latest week.

Bitcoin traded near $65,400 as investors assessed Alphabet’s AI spending plans, rising oil prices, and shifting interest-rate expectations. Other major cryptocurrencies remained relatively steady, with Ether around $1,916, XRP near $1.13, and Solana close to $77.

Attention now turns to the Federal Reserve’s July 28–29 meeting, which could become a key driver for the next move across crypto and traditional financial markets.