U.S. President Donald Trump declared the temporary ceasefire with Iran over during the NATO summit. The breakdown follows recent Iranian strikes on three commercial vessels in the Strait of Hormuz. The U.S. military retaliated with a fresh wave of strikes against Iranian targets.
Global markets reacted immediately to the geopolitical escalation. Bitcoin and Ethereum fell up to 2%, pushing Bitcoin back below the $63,000 threshold. Oil prices surged nearly 6% within 24 hours. Safe-haven gold retreated to $4,030 an ounce as energy inflation fears mounted.
Rising geopolitical risk strengthened the U.S. Dollar. Treasury yields climbed higher, pressuring equities across the board. U.S. equity futures dropped more than 1%. The German DAX fell over 2.5%. Washington also officially revoked a key economic waiver, tightening global energy sanctions by blocking the sale of Iranian oil.
The digital asset sector faced severe liquidity contraction. The stablecoin market shrank by 2.4%, shedding $7.7 billion. That marks the largest monthly decline in stablecoin liquidity since the TerraUSD collapse in 2022. Bitcoin’s June sell-off already recorded its steepest monthly decline in four years.
Corporate treasuries are adjusting their holdings. MicroStrategy disclosed a $216 million Bitcoin sale earlier in the week. The broader market largely absorbed the institutional liquidation. At the same time, Japanese companies are acquiring Bitcoin to hedge against a weakening yen.