The fragile calm between Washington and Tehran lasted about two months. It ended on June 10 when Iranian Revolutionary Guards launched strikes against a US base in Jordan and 21 additional targets across the Gulf, marking the most significant military exchange between the two nations since their April ceasefire.

US Central Command had already targeted Iranian military sites near the Strait of Hormuz around June 9-10, strikes the Pentagon classified as self-defense following the downing of an American Apache helicopter. President Donald Trump blamed Iran for the helicopter incident. Iran called its response proportional retaliation.

Futures markets react swiftly

S&P 500 futures fell approximately 0.5% in the early hours following the June 10 escalation. Nasdaq futures took a harder hit, dropping roughly 0.86%.

Oil prices climbed as traders priced in the possibility of disruptions to shipping through the Strait of Hormuz, a waterway through which about 20% of the world’s oil passes.

Bitcoin and other major cryptocurrencies recorded declines between 1.5% and 4% as the risk-off mood spread across asset classes.

This isn’t Bitcoin’s first rodeo with US-Iran tensions. In late May, Bitcoin fell below the $73,000 mark amid a similar flare-up, triggering approximately $1 billion in liquidations. The June sell-off represents a continuation of that pressure rather than a fresh shock to a healthy market.

Sanctions add a regulatory layer

On June 2, about a week before the latest strikes, the US Treasury imposed sanctions on four Iranian digital asset exchanges: Nobitex, Bitpin, Ramzinex, and Wallex. The sanctions were designed to curtail Iran-linked token activity, targeting the infrastructure that allegedly enables Iranian entities to move value through crypto rails.

What this means for investors

Market analyses have suggested a trend of diminishing impacts from repeated US-Iran incidents over time, with each successive escalation producing a smaller drawdown than the last.

The late May drawdown below $73,000 with $1 billion in liquidations demonstrated how vulnerable leveraged crypto positions are to geopolitical shocks. Traders with significant leverage should be particularly cautious, as the late May liquidation cascade showed how quickly positions can unwind when geopolitical headlines hit during low-liquidity Asian trading hours, which is exactly when the June 10 news broke.