US forces struck Iranian targets near the Strait of Hormuz on May 28, prompting a retaliatory strike from Tehran. The escalation follows President Trump's public dismissal of a ceasefire deal reportedly brokered by Oman, though he claimed negotiations are ongoing.
Bitcoin fell below $73,000, triggering nearly $1 billion in leveraged liquidations. Ether, Solana, and XRP each dropped 3-4%, reflecting a broad risk-off shift across crypto markets. Oil prices rose as the Strait of Hormuz, a chokepoint handling roughly 20% of global oil supply, remains volatile.
The conflict began with a joint US-Israel airstrike on February 28 that killed Iranian Supreme Leader Ali Khamenei. Iran responded by effectively closing the strait, sending oil prices soaring. A fragile April ceasefire briefly stabilized markets, but the latest strikes mark a clear intensification. Doha-mediated talks are ongoing but fading.
For investors, the key variable remains the strait's status. If it reopens, a relief bounce is likely. If negotiations collapse, Bitcoin's floor below $73,000 may not hold.