Crypto Market Falls Sharply After Attack on Iran’s South Pars Gas Field

The crypto market has sharply fallen today, erasing earlier gains following reports of an attack on Iran’s South Pars gas field. This development has further put the global markets on edge, with Iran already threatening earlier on to escalate tensions against the U.S. and Israel.

Crypto Market Crashes Following Attack On Iran’s South Pars Gas Field

TradingView data shows that the total crypto market is down almost 2% today, dropping to $2.47 trillion. This market crash is led by the Bitcoin price, which has crashed from an intraday high above $74,000 to below $73,000 at the time of writing.

The crypto market crash follows a report of an attack on Iran’s South Pars gas field, which is a key source of pipeline gas. Citing the Iranian state media, AP reported that facilities associated with Iran’s massive offshore South Pars natural gas field came under attack.

Axios reported that Israel was responsible for these attacks on Iran’s refinery, with Israel getting approval from the U.S.  This could further escalate tensions in the Iran war, which is already in its third week. These attacks follow the killing of Iranian Security Chief Ali Larijani in an Israeli air strike, with Iran vowing retaliation.

The U.S. had also attacked Iran’s Kharg Island, a key oil terminal, over the weekend. Back then, Trump noted that the U.S. only targeted military assets on the island, but threatened to wipe out Iran’s oil infrastructure if it did not reopen the Strait of Hormuz.

It is worth noting that the attack on Iran’s key energy infrastructure has again sent oil prices rising, which is bearish for the crypto market. Brent crude oil futures rose sharply on the back of this development and are trading at around $105, up almost 2% today.

Iran To Respond To Strikes

Citing Iranian military sources, Fars news agency reported that Iran intends to respond to the strikes on its gas facilities by targeting “enemy infrastructure that was previously thought to be safe.” The sources described the Pars attack as a “war crime” that would not go unpunished.

An imminent Iranian retaliation could put further pressure on crypto prices, with the country set to target the Gulf countries. Iran’s Tasnim news agency listed energy sites in the Gulf region as “legitimate targets” that Iran could strike soon. These include energy sites in Qatar, Saudi Arabia, and the UAE.

Crypto traders continue to price in a prolonged war between the U.S. and Iran. The odds of a ceasefire by June 30 have now dropped to 56%, down double digits from 74% earlier this week, according to Polymarket data.