The United States launched self-defense strikes against Iran on Tuesday at 5 p.m. ET, hours after an Army Apache helicopter was shot down over the Strait of Hormuz. The crew was safely rescued, but the military response rattled global markets. Bitcoin slid below $62,000, down about 2% in 24 hours, as investors pulled capital from speculative corners.
What happened Tuesday
President Donald Trump described the strikes as a proportional response to Iranian aggression. The operation started just after a US Army Apache was downed over the strategic waterway connecting the Persian Gulf to the open ocean. International mediators, including Pakistan, had been pressing for an extension of the ceasefire. Those talks now look uncertain. Iran condemned the strikes as a gross violation of the truce and warned of possible retaliation.
The escalation comes on top of Operation Epic Fury, the broader campaign against Iranian military and nuclear sites that began in late February.
How markets reacted
Bitcoin wasn't the only asset feeling the pressure. Brent crude traded near $93 with upward volatility as supply fears mounted over the Strait of Hormuz – a chokepoint for roughly a fifth of the world's oil. Gold hovered around $4,220, barely budging. But higher oil prices stoked fresh concerns about inflation and rising interest rate expectations, which typically weigh on assets like gold that offer no yield. The broader mood was pure risk aversion: move away from anything speculative, shift into safer corners of the financial system.
What comes next
The immediate question is whether Iran follows through on its threat of retaliation. If it does, oil could spike further, deepening inflation fears and putting more pressure on crypto and other risk-on assets. If cooler heads prevail – and mediators resume their push – the risk-off tone could ease just as quickly. The White House hasn't indicated any further military steps, but the Apache shootdown and the strike response have shattered the fragile calm that held for weeks. Markets will be watching the Strait of Hormuz and the diplomatic channels closed for now.
