Israel’s attack on Iran on June 12, 2025, marked a critical moment in geopolitical tensions, with immediate impacts on financial markets. Bitcoin’s price dropped by approximately 4.5%.
On the night of June 12, 2025, Israel launched airstrikes against “dozens of military targets, including nuclear targets” in Iran. The primary target was the uranium enrichment facility in Natanz, described as the “heart” of the Iranian nuclear program. Scientists involved in the program were also targeted, and Iran reportedly possesses enough uranium to produce up to 15 nuclear warheads within a few days. Israel justified the attacks as a preventive measure against the “existential threat” posed by the Iranian nuclear program, stating that actions would continue “for as long as necessary.”
Israeli airspace was closed to prevent retaliation, and explosions were reported in residential areas of Tehran, with all flights suspended at Imam Khomeini Airport. U.S. Secretary of State Marco Rubio stated that the United States did not participate in the attacks, but the evacuation of embassies in the region indicates concerns about potential Iranian retaliation.
Nuclear Negotiations and Diplomatic Responses
Nuclear negotiations between the U.S. and Iran are at an impasse. On June 3, 2025, Khamenei categorically rejected the American proposal to halt all uranium enrichment on Iranian soil, as reported by the Institute for the Study of War. President Trump expressed pessimism about the negotiations but reiterated opposition to military actions against Iran, as reported on June 11, 2025, by the Institute for the Study of War. The divergence between the U.S.’s diplomatic approach and Israel’s military stance adds complexity to the situation.
Impact on Financial Markets
The Israel-Iran conflict has generated a wave of uncertainty in financial markets, with varying impacts on different assets.
Analysis: Bitcoin’s price experienced a significant drop of approximately 4.5% in less than 24 hours, from US$108,677.13 on June 12 at 02:15 UTC to US$103,756.77 on June 13 at 02:06 UTC.
This decline coincides with the timing of Israel’s attack on Iran, suggesting that geopolitical uncertainty led to a sell-off of assets considered higher risk, such as cryptocurrencies. Although Bitcoin is often compared to gold as a “safe-haven asset,” high-tension geopolitical events, such as the April 2024 conflict, showed similar declines, as reported by Reuters.
Stock markets are likely to face volatility, following patterns observed in previous conflicts. The complexity of the conflict, combined with ongoing nuclear negotiations, suggests that markets will continue to closely monitor developments, with potential for increased volatility should the situation escalate.
Investors should remain alert to new developments, especially regarding possible Iranian retaliation and the impact on oil prices and safe-haven assets. This event highlights the interconnectedness between geopolitics and the economy, reinforcing the importance of diversified investment strategies in times of uncertainty.
