Iran’s military response to recent US strikes sent shockwaves through global financial markets on Monday, dragging Bitcoin lower as oil prices surged following Tehran’s declaration that the Strait of Hormuz was closed.
The escalation came after the US carried out strikes on multiple Iranian military targets, prompting Iran’s Islamic Revolutionary Guard Corps (IRGC) to launch missiles and drones toward several US military facilities across the Middle East. The growing conflict triggered a broad risk-off move, with cryptocurrencies, stocks, and precious metals coming under pressure.
— U.S. Central Command (@CENTCOM) July 13, 2026
Why did Bitcoin fall as the Iran-US conflict escalated?
Bitcoin dropped more than 2% as investors reacted to rising geopolitical tensions and moved away from risk assets. At the time of writing, Bitcoin was trading around $62,769 after fluctuating between a daily high of $64,340 and a low near $62,806.
Trading activity also increased, with 24-hour volume rising 22% as traders bought into the market decline.
The sell-off followed reports that the IRGC launched retaliatory strikes targeting US military bases in Bahrain, Kuwait, Jordan, Qatar, and the headquarters of the US Navy’s Fifth Fleet in Bahrain after Washington attacked dozens of Iranian military sites.
The US strikes reportedly targeted Iran’s air defence systems, missile and drone infrastructure, coastal radar facilities, and military boats used around the Strait of Hormuz.
Oil jumps 5% after Strait of Hormuz closure
Oil prices climbed about 5% after Iran declared the Strait of Hormuz closed, raising concerns over disruptions to one of the world’s most important shipping routes for crude exports.
The sharp rise in oil added fresh pressure to financial markets already unsettled by the conflict. US stock futures fell nearly 2.5% as investors sought safer assets.
Meanwhile, the US dollar strengthened, with the Dollar Index (DXY) moving above 101, while the benchmark 10-year US Treasury yield climbed to around 4.60%, reflecting increased demand for traditional safe-haven assets.
What’s next for the crypto market?
Beyond the geopolitical tensions, traders are also watching important US economic events scheduled this week.
The upcoming US Consumer Price Index (CPI) report is expected to provide new signals on inflation and the Federal Reserve’s next policy decisions. Investors are also awaiting Federal Reserve Chair Kevin Warsh’s first appearance before the US Congress on Tuesday.
With geopolitical risks rising and major economic data approaching, volatility is expected to remain elevated across the cryptocurrency market in the coming days.
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