The total cryptocurrency market fell 1.24% on Wednesday after the United States launched military strikes against Iran, lifting oil prices and pushing investors out of risk assets.

Bitcoin (BTC), Ethereum (ETH), and most large tokens traded lower over the past 24 hours, though the majors held onto strong gains built over the past week.

Oil Price Jumps as US Strikes Hit Iran

CENTCOM said its forces struck Iran, revealing they hit more than 80 targets with precision munitions on July 7. The actions followed reports of Iranian attacks on three vessels in the Strait of Hormuz.

The latest attacks tested a fragile ceasefire reached between Washington and Tehran last month. The military described the operation in a statement posted to social media.

“The unwarranted aggression by Iranian forces is a clear and dangerous violation of the ceasefire and undermines freedom of navigation,” CENTCOM wrote.

At the same time, Washington re-imposed sanctions on Iranian oil. The Ministry of Foreign Affairs of the Islamic Republic called it a “clear and material breach of Article 10 of the Memorandum of Understanding on the Cessation of War.”

Following the escalation, oil prices jumped. Brent crude rose 2.05% to $75.68 a barrel, according to Trading Economics data. US West Texas Intermediate (WTI) gained 2.07% to $71.90.

Crypto Retreats in Risk-Off Move

Meanwhile, crypto markets moved in the opposite direction, with the total market cap down 1.24%. Bitcoin traded near $63,551, down 0.59% over 24 hours. Ethereum slipped 0.84% to about $1,776.

Hyperliquid (HYPE) led losses among the top 10 assets, falling 3.38% to $69.08. XRP (XRP) dropped 2.61%, and Solana (SOL) fell 2.26%.

The pullback came after a strong week for digital assets. Higher oil prices tend to fuel inflation worries. Those concerns can push expectations of interest rate cuts further out, weighing on risk assets.

Source: BeInCrypto