Iran conflict has a "brief" impact on market prices, Bitcoin rebounds
In response to investors reacting to the U.S. and Israel's airstrikes on Iranian nuclear facilities, Bitcoin found its footing again late Sunday, with trading prices breaking through $101,000, recovering from earlier losses over the weekend. Meanwhile, gold prices fluctuated moderately, and oil and stock futures reacted mildly, indicating that traders expect the conflict to be contained rather than a prolonged geopolitical shock.
The U.S. military actions were coordinated with Israel, involving more than 125 aircraft and bunker-buster bombs, targeting Fordow, Natanz, and Isfahan. Iran launched missile and drone attacks on Israeli cities and threatened to strike U.S. military bases in the Gulf region.
Despite the escalation, the market quickly stabilized. Gold prices briefly touched $3,398 before retreating to $3,374, while oil prices gave back early gains, ultimately rising by only 0.5%.
"The market still expects this war to last a very short time," wrote Cobesi in a message on X, noting that oil prices remain well below levels historically associated with disruptions in the Strait of Hormuz.
The cryptocurrency market also exhibited a similar trend. Although Bitcoin initially faced selling pressure during the peak news cycle over the weekend, traders returned to the market as risk appetite rebounded.
Swyftx Chief Analyst Pav Hundal stated, "After the U.S. attacks, we saw a lot of twitch trading, and the trading volume remains high." He added, "The uncertainty in the Middle East, with no one knowing what will happen next, creates that environment that traders hate. The drop in Bitcoin is not surprising; it remains an emerging asset class, and volatility is part of its DNA. If tensions ease, we should see market confidence recover, and prices will start to rise."
Iran's Foreign Minister flew to Moscow for urgent consultations on Sunday, while President Trump hinted that the U.S. would pause further military actions. The final decision on the next steps may be made within two weeks. Meanwhile, European leaders urged all parties to exercise restraint and expressed openness to resuming diplomatic negotiations.
