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The latest conflict between the United States and Iran drives oil prices higher, and cryptocurrencie

2026-07-18 00:51:00
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The United States launched its sixth consecutive night strike on Iran on the evening of July 16, expanding the scope of the attack to military infrastructure near the strategically important Strait of Hormuz, marking a new round of escalation in the conflict.

The U.S. Central Command confirmed that the operation targeted Iran's air defense systems, coastal surveillance sites, military logistics infrastructure and maritime capabilities.

The U.S. military also attacked areas around Bandar Abbas and Qeshm Island, which contain key Iranian naval facilities overlooking the Strait of Hormuz.

Iran responded with new missile and drone strikes, striking multiple U.S. military facilities in the region, including what Iranian officials called its first direct strike on U.S. military positions in Syria.

Markets are increasingly concerned that the conflict could disrupt shipping in the Strait of Hormuz, a waterway that carries about one-fifth of the world's oil supply.

Ship traffic has slowed after the United States reimposed naval restrictions on Iranian ports, raising concerns about supply disruptions.

On July 17, oil prices soared and traders added a higher geopolitical risk premium to the price.

Brent crude climbed above US$86 a barrel, and West Texas Intermediate rose above US$81. Both benchmarks are expected to achieve weekly gains of more than 13%.

Geopolitical tensions intensify, risky assets fall back

As conflicts intensify, investors turn to a safe-haven stance, stocks and cryptocurrencies are under pressure, and oil prices are climbing. Bitcoin has fallen more than 2% to about $63,200 in the past 24 hours, and Ethereum has fallen about 3.5% to $1,820. Solana fell nearly 3% to about $74 and XRP fell nearly 3% to $1.08, reflecting widespread sell-off in digital assets.

Cryptocurrency market heat chart as of press time

U.S. stocks and precious metals also fell. The Nasdaq Composite Index fell about 1.5%, the S & P 500 fell 0.87%, and the Dow Jones Industrial Average fell 0.21% as investors reduced exposure to growth assets.

As of writing, gold was down about 0.5% to about US$3,970 an ounce, and silver was down more than 1.5% to about US$55 at press time.

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