US carries out retaliatory attacks on Iran, crypto market reacts

Tensions between the United States and Iran are escalating sharply. After the shooting down of a US Apache attack helicopter, the US military is now carrying out retaliatory strikes on targets in Iran. The crypto market is reacting nervously to the news, with Near as a notable loser.

Retaliatory strikes on Trump’s orders

On the orders of President Donald Trump, the United States Central Command is carrying out strikes on various targets inside Iran. These include air defence systems, ground control stations and surveillance radar systems. According to CBS, US officials describe the actions as a proportional response to what they call ‘unprovoked Iranian aggression’. The strikes, according to the US, are not intended to spark a broader war.

The trigger for the action is the shooting down of a US AH-64 Apache helicopter on Monday, near the coast of Oman and the Strait of Hormuz. Trump claims that Iran shot down the helicopter. The two pilots remain unharmed. Iran subsequently responds to the retaliatory strikes with drone and missile attacks on military bases in Jordan, Bahrain and Kuwait.

Peace talks in uncertainty

The conflict comes at a remarkable moment. Trump previously indicated that peace negotiations with Iran are in a ‘final phase’ and that a deal could be reached within ‘two or three days’. Now that the situation is escalating militarily, it is unclear exactly where those negotiations stand.

The geopolitical unrest is also weighing on the crypto market. Near, about which analyst Arthur Hayes recently issued a warning, drops 5.3% to $2.07. Risk assets such as crypto traditionally react sensitively to geopolitical unrest, and this conflict is no exception. The broader crypto market is also under pressure as investors move towards safer havens. Earlier this week it became clear that the Trump family has already earned billions from crypto, which adds an extra dimension to the political implications of this conflict.