Iran’s army launched drone attacks on US military targets in the Persian Gulf region. Bitcoin dropped to roughly $99.5K in the immediate aftermath of the strikes before rebounding above $102K shortly after.

What happened and why it matters

The Iranian Islamic Revolutionary Guard Corps targeted US military sites in Bahrain and Kuwait on June 28, 2026. The strikes were a direct response to US airstrikes conducted near the Strait of Hormuz and other locations in the region.

The current conflict traces back to massive US-Israeli strikes on Iran on February 28, 2026, which resulted in the death of Iran’s Supreme Leader Ali Khamenei. Since then, Iran has waged a sustained retaliatory campaign targeting US facilities across the Gulf states.

The Strait of Hormuz is the narrow waterway through which roughly 20% of the world’s oil supply flows.

Bitcoin’s geopolitical stress test

In May 2026, when US strikes near the Strait of Hormuz escalated tensions to a new level, Bitcoin fell below $73K. That move triggered roughly $1 billion in liquidations across crypto markets.

What investors should be watching

For traders and investors navigating this environment, position sizing matters. The $1 billion in liquidations during the May drawdown wasn’t caused by the geopolitical event itself — it was caused by people who were overleveraged when the event happened.

The Strait of Hormuz remains a critical geographic chokepoint. Oil prices, shipping routes, and global supply chains all funnel through that narrow passage.