Bitcoin

This confrontation shatters the fragile April ceasefire and risks a wider regional conflict that could disrupt oil supply through the Strait of Hormuz and Red Sea, fueling inflation fears. Historically, Bitcoin has initially sold off on geopolitical shocks (e.g., Russia-Ukraine 2022) but later rallied as a non-sovereign store of value when traditional hedges (gold, treasuries) are constrained by sanctions or liquidity.

Israel and Iran exchanged missile fire in the most serious confrontation since a ceasefire agreed in April, and Yemen's Houthi rebels threatened to target ships in the Red Sea.