Israel's Iran Campaign Sends Oil Prices Soaring and Crypto Volatility Through the Roof

The ongoing military campaign against Iran by Israel is causing ripples in global markets, including oil and cryptocurrency. Israeli Prime Minister Benjamin Netanyahu has pledged to continue operations, regardless of US-led diplomatic efforts. This stance has sent shockwaves through traditional finance and crypto markets.

Oil prices have been affected as the Strait of Hormuz was disrupted due to Iranian aggression, leading to a fragile ceasefire breakdown in late February 2026. The subsequent market reactions saw oil markets move sharply, with Bitcoin dropping from around $68,000 to $63,000 before recovering above $67,000 by early March.

Ethereum followed a similar pattern, exhibiting risk-off behavior during the conflict's opening weeks. Iranian exchanges witnessed significant crypto outflows, with $10.3 million in assets leaving the exchanges between Saturday and Monday following the initial strikes in late February 2026.