US Strikes Rattle Markets as Iran Vows Retaliation

In a dramatic turn of events over the weekend, the United States launched a strike on Iran’s main nuclear facility, sending shockwaves across global markets. The geopolitical escalation has caused a significant ripple effect—from energy prices to equities and even crypto assets.

On Sunday (22 June), the price of West Texas Intermediate (WTI) crude oil soared by as much as 14% before settling to end the day up by more than 7%. Investors are now grappling with the potential disruption in global energy supply chains, fearing a protracted standoff in the Middle East that could restrict the flow of oil.

Meanwhile, the S&P 500 dropped over 1% as traders fled riskier assets, and US Treasury yields also fell, reflecting heightened uncertainty. Analysts are also raising concerns about the inflationary effects of a sharp rise in oil prices—something central banks around the world will be monitoring closely.

Crypto Markets Feel the Pressure

Unsurprisingly, the cryptocurrency market also reacted to the news. While not collapsing, the digital asset sector did show signs of pressure.

Bitcoin (BTC) managed to hold relatively steady, remaining just above the US$102,000 mark. Its resilience has raised questions about whether investors are beginning to see Bitcoin as a hedge during geopolitical crises, much like gold.

However, Ethereum (ETH) wasn't as lucky. The second-largest cryptocurrency by market cap fell sharply, dropping 6.05% in the last 24 hours. ETH is now priced at US$2,277, a significant drop from its recent level of US$2,500.

Altcoins were also hit broadly across the board, with many showing red candles as uncertainty spooked short-term holders.

Iran Responds with Defiance

The Iranian government wasted no time in addressing the incident, stating it would not back down in the face of external aggression. Iranian officials emphasised that they would defend their sovereignty by any means necessary and promised that the US would face consequences for its actions.

This firm stance adds another layer of risk for global markets, with investors keeping a close eye on potential escalation and counterattacks.

What's Next?

At this stage, it’s unclear how long this market instability will last. Much depends on the international response, further actions from Iran, and whether the United States will initiate additional military moves.

For now, investors are urged to tread carefully. The energy sector may continue to see price spikes, and assets considered "safe havens"—such as gold, US Treasuries, and possibly Bitcoin—could attract increased interest in the coming days.

Final Thoughts

As history has shown, geopolitical shocks often introduce temporary volatility but also open up strategic opportunities for long-term investors. Traders and institutions alike are now recalibrating risk models in response to heightened tensions between the US and Iran.

Whether this marks the beginning of a larger regional conflict or remains an isolated incident, one thing is clear: markets are on edge, and investors are watching every headline closely.

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