Iran’s top military command just made things very clear. On July 8, Khatam al-Anbiya Central Headquarters, the Islamic Republic’s joint armed forces command, declared that any location supporting US military operations against Iran is now a legitimate target.

The statement came in response to what Iran labeled “blatant aggression,” referring to US strikes on southern Iran. The command promised a “crushing response,” a phrase that carries particular weight when the entity saying it controls access to the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supply flows daily.

What’s actually happening on the ground

This isn’t a one-off statement. Khatam al-Anbiya has been issuing escalating warnings since March 2026, consistently threatening retaliatory strikes against US and Israeli energy and infrastructure facilities if Iranian assets are targeted.

The command has also threatened to close or regulate passage through the Strait of Hormuz for vessels that don’t comply with Iranian rules.

The broader conflict involves coordinated US and Israeli military operations targeting Iranian interests, which has prompted Tehran to widen its threat matrix beyond traditional military targets. Iranian leadership has signaled willingness to target US energy infrastructure and even civilian sites in the region.

The crypto market fallout is already here

Bitcoin dropped below $73,000 in June as the US-Iran strikes escalated, triggering over $1 billion in liquidations across the crypto market.

The pattern from March through July has been consistent: every major escalation in the US-Iran confrontation has produced measurable volatility spikes in crypto markets.

Sanctions, stablecoins, and the Treasury’s crackdown

The US Treasury has imposed sanctions targeting Iranian cryptocurrency networks, focusing on how the Islamic Republic has been using digital assets to circumvent existing sanctions regimes.

The Treasury has also flagged risks associated with digital asset payments related to Strait of Hormuz passage.

The Strait of Hormuz threat adds a layer that traditional crypto analysis doesn’t capture. If Iran restricts oil flows, the resulting energy price shock would ripple through every asset class, including digital ones. Higher energy costs also mean higher mining costs for proof-of-work chains, compressing margins for miners who are already operating on thin profitability.