The total collapse of the mid-June peace agreement between the United States and Iran escalated this weekend as U.S. forces launched a third round of military strikes against Iranian targets. Despite the geopolitical instability and Tehran officially closing the Strait of Hormuz, the cryptocurrency market absorbed the shock. Bitcoin prices held steady near $63,800 on Saturday, while Ether hovered around $1,800.
President Donald Trump ordered the latest strikes to degrade Iran’s ability to attack commercial vessels following an Iranian strike on a Cyprus-flagged container ship. In direct retaliation, Tehran declared the Strait of Hormuz closed “until further notice,” a development confirmed by a syndicated CoinDesk report. Vessel-tracking data during Asian trading hours on Sunday morning showed that maritime traffic near the strait plummeted well below normal volume.
The muted weekend trading activity contrasts sharply with the market’s initial reaction earlier this week. When the skirmishes first broke out on Wednesday, the sudden conflict triggered a $1.83 billion wave of liquidations across 277,000 crypto traders. Bitcoin temporarily slipped below the $66,000 threshold during that initial panic.
While Bitcoin and Ether absorbed the weekend strikes without severe drops, broader alternative cryptocurrencies sustained heavier losses. Solana and Cardano both shed 4.5%, and XRP declined by 2.2%. This divergence in the altcoin market occurred alongside broader macroeconomic fallout and the formal end of the mid-June peace deal, detailed in a market analysis report.
The initial Iranian attacks on three commercial oil tankers earlier in the week briefly pushed Brent crude oil futures past $80 a barrel. The Federal Reserve’s June minutes highlight that U.S. central bankers remain highly concerned about these exact Middle Eastern energy supply shocks keeping inflation elevated.
How the SEC Plans to Counter Crypto Market Instability
Amid the global uncertainty generated by the military escalation, domestic regulatory frameworks are shifting. The U.S. Securities and Exchange Commission, operating under Chair Paul Atkins, updated its rule-making agenda.
Easing Regulatory Burdens for Startups
The agency is expected to propose its first major cryptocurrency policy this month. The new rule is aimed at easing fundraising requirements and regulatory burdens for crypto startups, providing a clearer operational runway for digital asset firms operating during the current geopolitical volatility.