On Saturday, the United States carried out a large-scale strike against Iran’s nuclear facilities. In response, Bitcoin dropped below $100,000, and Ethereum fell through the $2,200 mark. The total crypto market capitalization shrank by nearly 5%. The biggest impact came after reports of a potential closure of the Strait of Hormuz — a key maritime route for around 25% of global oil shipments.
Iran Responds and Oil Market Risks Rise
Tehran declared its right to self-defense and launched a series of missile strikes on Israel. Dozens of people were injured, and damage was reported in Tel Aviv. So far, Iran has refrained from its most serious threats: strikes on U.S. bases and the closure of the Strait of Hormuz.
However, the Iranian parliament approved a proposal to block the strait. The final decision lies with the country’s Supreme National Security Council. The Strait of Hormuz is a vital maritime choke point, with about 25% of the world’s seaborne oil trade passing through it, according to Reuters. Any disruption could significantly impact commodity markets and oil prices.
Crypto Market Reacts With Sharp Decline
News of potential regional escalation and risks to oil supplies quickly impacted cryptocurrencies. According to Coinmarketcap, Bitcoin lost about 2% after the announcement, falling below $100,000, though it later recovered to $102,000 at the time of writing. Ethereum dropped by 3,5%, trading below $2,200. The overall market declined by nearly 5% in a day.
Investors viewed the reports of airstrikes and possible blockades as a signal of rising geopolitical risks. Amid this instability, many chose to take profits and reduce their exposure, which added downward pressure on the market.
Washington’s Response and Global Context
Meanwhile, U.S. Secretary of Defense Pete Hegseth stated that the operation was not aimed at regime change.
“This is not the beginning of a war, nor its continuation,” he emphasized.
He said the main objective was to neutralize threats from Iran’s nuclear program. Hegseth added that the U.S. had sent private messages to Tehran urging negotiations.
He clarified that Congress was notified of the attack only after American aircraft had left Iranian airspace. He also noted that the U.S. does not seek open conflict but is prepared to respond to any attacks.
U.S. Bases on High Alert
Amid rising threats, the Pentagon reinforced security at American facilities in Iraq and Syria. Around 40,000 U.S. troops are already stationed in the region, including air defense units, fighter jets, and ships equipped with missile interception systems.
Some equipment was relocated in advance to safer zones: aircraft from the Al Udeid base in Qatar and ships from the port in Bahrain, home to the U.S. Fifth Fleet, were withdrawn from vulnerable positions before the operation began.
Political Pressure and Allied Involvement
U.S. President Donald Trump, despite his previous pledges to avoid military intervention, directly supported Israel’s strikes on Iran. He stated that Tehran must either engage in peaceful negotiations or face further attacks.
U.S. Secretary of State Marco Rubio urged Beijing to put pressure on Iran and prevent the closure of the Strait of Hormuz.
What Comes Next
According to experts, the market remains on edge. The threat of a Hormuz blockade could severely impact oil prices and trigger global chain reactions from inflationary pressure to increased demand for safe-haven assets. In this scenario, cryptocurrencies could either continue to decline as capital flows into fiat, or experience a rebound if investors begin to view them as a hedge against instability. Everything depends on Iran’s next move and the U.S. response. Markets are currently teetering between fears of escalation and hopes for diplomatic de-escalation.
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