TLDR
- Bitcoin fell nearly 1% to around $62,657 as U.S.-Iran airstrikes pushed oil and the dollar higher
- Ether, XRP, and Solana dropped between 1% and 2.3% on the news
- The Dow dropped over 100 points, the S&P 500 fell 0.5%, and the Nasdaq lost 1.2%
- Crude oil jumped over 2%, with WTI trading above $72 a barrel and Brent above $74
- SpaceX stock fell below its IPO price after Nasdaq inclusion let early investors sell their shares
The United States launched what it called “powerful strikes” against Iran on Tuesday after Iranian forces attacked three commercial ships in the Strait of Hormuz, including Qatari and Saudi tankers. Iran responded by saying it targeted 85 U.S. military installations in retaliation for strikes on its Hormozgan and Mahshahr provinces.
BREAKING: US announces it has hit over 80 targets with precision munitions in tonight's strikes on Iran, including more than 60 IRGC speed boats in and near the Strait of Hormuz, per CENTCOM.
US strikes also targeted Iranian air defense systems, command and control networks,… pic.twitter.com/bUEkJGo374
— The Hormuz Letter (@HormuzLetter) July 8, 2026
The exchange raised fears that the ceasefire between the two countries is close to breaking down. The Iran conflict began in late February, sending oil above $100 per barrel before prices fell back below $60.
Now, oil is climbing again. West Texas Intermediate futures jumped more than 2% to above $72 a barrel. Brent crude rose over 3% to around $74. The U.S. Treasury also revoked a license that had allowed Iran to export oil, adding to supply concerns.
Crypto Markets Feel the Pressure
Bitcoin slipped to around $62,657 during Asian trading hours, down nearly 1% from midnight UTC. Ether, XRP, and Solana each fell between 1% and 2.3%.
The Dollar Index held steady above 101.00, building on Tuesday’s gains. A stronger dollar typically puts pressure on crypto prices. Rising oil also stokes inflation fears, which can lead to higher interest rates. Higher rates make bonds more attractive, pulling money away from riskier assets like crypto.
Stock Futures Trade Lower
U.S. stock index futures slipped ahead of Wednesday’s open. Dow futures, S&P 500 futures, and Nasdaq 100 futures all dipped below the flatline.
During Tuesday’s regular session, the Dow dropped more than 100 points after briefly touching a record intraday high. The S&P 500 fell 0.5% and the Nasdaq lost 1.2%. Semiconductor stocks led the decline on the Nasdaq.
SpaceX made its public market debut after being included in the Nasdaq. The stock quickly fell below its IPO price as early investors used the inclusion to offload shares. Still, major banks remain positive on the company. JPMorgan set a price target of $225, while Morgan Stanley set a Street-high target of $300.
Fed Minutes in Focus
Markets are also watching the Federal Reserve. The minutes from the Fed’s June meeting are due Wednesday afternoon. That meeting was the first chaired by Kevin Warsh, who held rates steady. Investors will look for signals on where rates may be heading next.
Higher rates remain a concern across markets. Rising inflation expectations tied to the Iran conflict could push central banks to act, which would add further pressure on both stocks and crypto.
The situation in the Middle East and the Fed’s next move are now the two biggest factors driving markets heading into the rest of the week.
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