President Donald Trump is threatening retaliatory strikes against Iranian infrastructure, ratcheting up a conflict that has already sent shockwaves through both traditional and digital asset markets. The threat comes amid a broader military escalation that saw the US president declare a ceasefire with Iran “over” during a NATO summit in Turkey on July 8.
For crypto investors, the timing is brutal. Bitcoin fell below $62,000 in the immediate aftermath of renewed hostilities, and total cryptocurrency liquidations hit $450 million.
How we got here
The roots of this particular crisis stretch back to February 2026, when Iranian forces declared the Strait of Hormuz “closed.” For context, roughly 20% of the world’s oil passes through that waterway.
That declaration forced an increased US military presence in the region, raising political risk for maritime trade and setting the stage for the confrontation now unfolding. The situation escalated dramatically on July 7-8 when US forces conducted strikes on over 60 boats belonging to the Islamic Revolutionary Guard Corps (IRGC) in the strait.
