Israel launched a “precise, preemptive strike” aimed at neutralizing Iran’s nuclear capabilities, escalating geopolitical tensions.

Bitcoin (BTC) plunged sharply, hitting a low of $103,162 as Israeli forces targeted nuclear and military sites across Iran, including Tehran. The cryptocurrency later rebounded slightly but still traded about 2% lower compared to the previous day.

Israeli Prime Minister Benjamin Netanyahu stated that the strikes focused on Iran’s nuclear program and ballistic missile infrastructure, declaring the offensive would continue until the threat to Israel’s survival is fully eliminated.

Market sentiment had not fully priced in the possibility of such a strike, with Polymarket showing less than a 30% chance of Israeli action against Iran by July.

Initial reports of the attacks came from Axios, with Al-Jazeera confirming explosions in Tehran shortly after.

Market Reactions

European equities declined, with the Euro Stoxx 50 Index falling 1.4% and the FTSE 100 retreating 0.7%. U.S. stock futures dropped roughly 1.4% across major indexes following the news.

Safe-haven assets rallied: gold futures rose 1% to $1,436 per ounce, while U.S. Treasury yields eased by 2 basis points to 4.32%. Oil prices surged sharply, climbing as much as 9% before settling around 5.6% higher.

Currency markets saw the U.S. dollar strengthen against the euro and British pound but weaken against the Japanese yen and Swiss franc amid the heightened uncertainty.