"Bitcoin Plunges, Yen Surges" US Airstrikes Spark Panic in Financial Markets

Global asset markets are being violently shaken as the specter of war deepens in the Middle East following US and Israeli strikes on Iran.

International crude prices surged on concerns over rising energy costs and potential logistics disruptions, while risk assets such as bitcoin weakened—highlighting a stark divergence across asset classes.

According to Reuters on the 1st (local time), Brent crude threatened the $80-a-barrel level, jumping by as much as 10% from the previous session. Market experts expect oil to rise at least another $10 depending on how the conflict escalates, including the possibility of Iranian retaliation.

With uncertainty mounting, investors are rotating into safe havens. The Japanese yen and Swiss franc gained, while the euro slid to its lowest level against the Swiss franc since 2015 and remained under pressure.

The crypto market was also hit head-on, with bitcoin at one point dropping below the $64,000 mark, transmitting the shock in full.

The financial industry is closely watching whether the situation could evolve into a prolonged “oil shock,” including a potential closure of the Strait of Hormuz.

Samy Chaar, chief economist at Lombard Odier, warned that “if the conflict becomes prolonged, a broad-based hit to inflation expectations and monetary policy—and ultimately to global economic growth—will be unavoidable.”

Reporter Yoo-jin Jung jinjin@hankyung.com