The financial fallout from the US-Iran conflict hit hard this week. Reports that President Trump is preparing to restart “Project Freedom” in the Strait of Hormuz sent US equity markets falling immediately, and crypto followed.
Bitcoin dropped below $80,000, and Ethereum fell under $2,300. Over $90 billion was wiped from the crypto market from local highs, and $331 million in liquidations in just 24 hours.
Three American Navy destroyers came under missile and drone fire while transiting the Strait of Hormuz. The ships were not struck. The US responded with strikes on two Iranian ports, Bandar Abbas and Qeshm. Iran retaliated by closing the strait entirely, with a newly created Iranian agency now claiming authority over all vessel transit.
The UAE reported overnight that its air defense systems intercepted Iranian ballistic missiles, cruise missiles, and drones. Residents were told to stay indoors and follow official updates.
Oil reversed a three-day decline and climbed back above $95 for US crude and $101 for Brent. Peace talks mediated by Pakistan have stalled, with both sides still fundamentally apart on one question: Does the Iranian regime survive a deal or not?
Trump described the strikes on Iranian ports as “just a love tap” and insisted the ceasefire remains in effect. But his warnings grew louder by the hour.
“They trifled with us today. We blew them away,” he told reporters. “If there’s no ceasefire, you’re not going to have to look very far. You’re just going to see one big glow coming out of Iran.”
On a deal, Trump said it “might not happen, but it could happen any day,” adding that Iran wants an agreement more than he does. He has also warned that rejection of the US offer would trigger higher-level military strikes.
(adsbygoogle = window.adsbygoogle || []).push({});Former National Security Adviser John Bolton said, “Now is exactly the wrong time to lessen pressure on Iran,” he said. “This is the time to increase our efforts and destroy the regime.”
Iran’s economy is already under severe strain. US-Israeli strikes have reportedly destroyed roughly 40% of its pre-war economic capacity. The naval blockade in the Gulf of Oman is cutting off most oil and gas revenues.
The Strait of Hormuz is closed. Markets are falling. And the next move belongs to Washington.
Related: Hegseth Says Ceasefire Not Over Despite Iranian Attacks in the Gulf
