The Crypto Market Saw a Pullback Amid Escalating Tensions in the Middle East

• Most major crypto assets are down on the daily chart.
• Stocks have fallen, oil prices have broken above $90 and higher, and Treasury yields are rising.
• This is a result of the renewed exchange of strikes between the US and Iran.

Since August 30, 2026, the US and Iran have continued exchanging strikes, directly impacting high-risk assets, including cryptocurrencies. According to CryptoRank, most assets on the daily chart are showing declines. 

Renewal of the Active Phase of the Conflict

On August 30, 2026, the US attacked launchers belonging to Iran’s Islamic Revolutionary Guard Corps (IRGC) on Larak Island near the Strait of Hormuz. It was the first strike after a month-long pause. Washington said it was carried out to “protect commercial shipping.” 

This was followed by an Iranian response targeting military bases in Jordan, without significant damage, as the US noted. President Donald Trump also announced new strikes.

On September 1, 2026, US Central Command (CENTCOM) reported an attack on a number of IRGC facilities inside Iran, including air defense systems, communications nodes, and infrastructure used to mine the strait. Iran responded with missile strikes on targets in Jordan and Bahrain. 

Iran also reported hits on civilian sites. According to Iranian authorities, a US strike hit a house in Kuhestak where a wedding was taking place. Earlier reports said five people were killed, including a child, and dozens were wounded. Iranian media also claimed strikes hit a civilian airport and infrastructure facilities.

Market Reaction

Against the backdrop of the renewed active phase of the conflict in the Middle East, oil prices jumped sharply. Since August 31, Brent futures have been rising steadily, with prices briefly reaching $96.7 before pulling back. WTI’s reaction was more muted, briefly breaking above $91.3. 

Over the past five days, the S&P 500 index, which includes the largest US companies, has fallen by more than 1%, and by 0.7% over the past day. 

In addition, the yield on 10-year US Treasury bonds reached 4.8%, the highest level since October 2023. These securities are often used as a gauge of inflation expectations. 

Against the backdrop of rising energy prices, a stock market sell-off, and higher bond yields, the CME forecast for US Federal Reserve policy has shifted. The probability of a rate hike in September rose to 68%. A week earlier, the figure stood at 36.6%. 

The Fed’s policy path directly affects high-risk assets, including crypto. The sector is also directly correlated with stock market swings. 

The result was a pullback on the daily chart across most major assets. 

Crypto trader Crypto Rover directly linked the current market dip to a fresh escalation in the conflict between the US and Iran. In his estimate, the sector’s market cap fell by about $85 billion on the news. 

At the same time, analyst Nebraskangooner believes bitcoin’s local bottom has likely already formed. According to him, the bullish scenario remains in play as long as the asset holds above $73,500, with potential targets at $87,000 and $97,000. 

Trader Jelle, for his part, allows for another downward impulse before a recovery, but believes the reversal is already close.

Сообщение The Crypto Market Saw a Pullback Amid Escalating Tensions in the Middle East появились сначала на INCRYPTED.