Iran's Revolutionary Guards launched missile and drone strikes on US radar systems in Oman and hit facilities across Gulf states this week, vowing further attacks. The escalation, which raises serious fears of oil supply disruptions, has already rattled global markets — and crypto didn't escape the selloff.
The strikes
The Revolutionary Guards claimed responsibility for the attacks early Friday, stating they targeted US radar installations in Oman as well as assets in several other Gulf countries. The group said it would continue operations, though it didn't specify a timeline or list additional targets. The strikes mark a significant escalation in an already tense region, and they come amid broader frictions over oil, shipping lanes, and regional influence.
Oil disruption fears
Markets are now pricing in the risk of a broader conflict that could choke off crude flows through the Strait of Hormuz, a critical chokepoint for about a fifth of the world's oil. With the Revolutionary Guards openly threatening further attacks, traders are bracing for supply constraints. That pushed oil prices up sharply, but the broader risk-off mood dragged down equities and crypto alike.
Crypto market reaction
Bitcoin and other major cryptocurrencies dropped on the news, as investors fled assets perceived as risky. The selloff was broad but not disorderly, with exchanges reporting normal trading volumes. The timing isn't great for crypto, which has been trying to hold recent gains amid mixed regulatory signals. One exchange briefly saw a spike in derivatives liquidations, but nothing like the cascading crashes of past geopolitical shocks. Still, the correlation with traditional risk assets is a reminder that crypto isn't insulated from global turmoil.
The immediate question is whether the US or its Gulf allies will retaliate, or if diplomatic channels can cool things down. The Revolutionary Guards have said they're ready for more strikes. For crypto traders, the watchword is volatility — and the next few hours could set the tone for the week ahead.
