U.S. forces struck Iranian military positions near Bandar Abbas on May 29, prompting a retaliatory strike by Iran's Islamic Revolutionary Guard Corps on a U.S. air base. The exchange near the Strait of Hormuz-a critical oil chokepoint-rippled across asset classes.
Crypto markets absorbed more than $600 million in liquidations. Bitcoin briefly traded in the low $70,000s as leveraged long positions were wiped out. Combined outflows exceeded $1.4 billion as investors rotated into safe havens.
The Treasury Department, led by Secretary Scott Bessent, confirmed it has seized roughly $1 billion in Iranian-linked digital assets. Iran has long used digital tokens to evade sanctions, and the seizures signal a significant upgrade in U.S. tracking capabilities.
The April 2026 ceasefire between the two countries now appears fragile. If tensions escalate further, analysts warn additional cascading liquidations are likely.