US forces struck Iranian targets near the Strait of Hormuz on May 28, and Iran struck back. The exchange came hours after reports of a potential Oman-mediated ceasefire deal were publicly dismissed by President Trump, who simultaneously claimed negotiations were still ongoing.
Bitcoin responded by sliding below $73,000, dragging roughly $1 billion worth of leveraged positions into liquidation. Ether, Solana, and XRP each fell in the range of 3-4%. The crypto market, it turns out, does not love kinetic warfare near the chokepoint that handles about 20% of the world’s oil supply.
How we got here
The broader conflict traces back to February 28, 2026, when joint US-Israel airstrikes killed Iranian Supreme Leader Ali Khamenei. Iran’s response was to effectively close the Strait of Hormuz to commercial shipping, a move that immediately reshaped global energy markets and sent oil prices surging.
A fragile ceasefire was established in April, offering a brief window of calm. Negotiations shifted to Doha, where mediators attempted to broker something more durable. The May 28 strikes represent a clear intensification, with both sides trading blows and mutual accusations rather than concessions. The Doha talks are technically ongoing, but the diplomatic runway is getting shorter by the day.
