Iran launches missile and drone attacks on 11 US bases, triggering $350M in crypto liquidations

Iran’s armed forces launched coordinated missile and drone attacks on 11 US military bases across Bahrain, Kuwait, and Jordan, marking a significant escalation in the 2026 conflict between Tehran and Washington. Bitcoin fell over 2% to around $62,000 in the wake of the attacks. Approximately $350 million in crypto liquidations followed, as leveraged traders found themselves on the wrong side of what turned into a textbook risk-off event.

The scale of the strikes

The attacks represent the latest in a series of coordinated Iranian military operations that have been escalating throughout 2026. Waves of strikes have hit US positions in February, March, June, and July of this year.

Satellite imagery analysis has revealed damage to at least 228 structures associated with US military operations. Specific targets included air-defense systems and support shelters at installations like the Muwaffaq Salti Air Base in Jordan and the Sheikh Isa Base in Bahrain. Reports indicate that strikes have hit targets across at least six countries.

On July 13, Iran confirmed ongoing “destructive drone” attacks targeting US forces in Kuwait, accompanied by warnings that further retaliation was coming.

The conflict traces its escalation back to Israeli and US operations against Iranian targets, which prompted Tehran’s retaliatory campaign. Historical patterns suggest that Iranian military actions often follow provocations near the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supply passes daily.

Crypto markets feel the blast radius

The 2% drop in Bitcoin, happening within hours of a military escalation, triggered a cascade of forced liquidations that wiped out $350 million in leveraged positions. Geopolitical shocks have historically caused sharp, short-term selloffs in digital assets as traders rotate into perceived safe havens like the dollar and gold.

What this means for investors

The $350 million in liquidations serves as a warning for traders running high leverage during periods of active military conflict. The regional scope of the conflict adds additional concern, with strikes across six countries creating potential for disruption to energy markets, shipping routes, and diplomatic relationships across the Middle East. Any disruption to oil flows through the Strait of Hormuz would send energy prices spiking, compounding pressure on risk assets including crypto. The correlation between Iranian military operations and activity near the Strait has been documented throughout this conflict.

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