Iran’s Islamic Revolutionary Guards Corps claimed on Wednesday that it had targeted 85 alleged “American military facilities,” launching sweeping bombing campaigns against neighboring Kuwait and Bahrain. The strikes came as retaliation for recent US military operations against Iranian targets near the Strait of Hormuz, one of the most important oil chokepoints on the planet.
Bitcoin didn’t take the news well. The largest cryptocurrency by market cap dropped to $62,870 as the conflict escalated, extending a downward trend that has tracked the deterioration of the situation in the Persian Gulf over recent weeks.
What’s happening on the ground
The IRGC framed its attacks as strikes against American military infrastructure, but the actual targets were in Kuwait and Bahrain, two Gulf states that host significant US military presence. The distinction matters. Hitting sovereign nations that happen to host American bases is a meaningful escalation beyond targeting US forces directly.
This isn’t a one-off event. The broader conflict has now been running for over 121 days, with exchanges of fire becoming increasingly routine. The Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes daily, has been a focal point of the hostilities. US strikes against Iranian positions near the strait preceded the IRGC’s latest offensive.
