Trump holds Situation Room meeting on military action against Iran, and crypto markets are already flinching

President Donald Trump convened a Situation Room meeting to discuss expanding military action against Iran, with the agenda centered on two familiar pressure points: Tehran’s nuclear program and control over the Strait of Hormuz.

What happened and why it matters

The Situation Room discussion follows a turbulent sequence of events that has played out over several months. Back on May 29, Trump held a two-hour Situation Room meeting aimed at finalizing a memorandum of understanding that would have extended a ceasefire and addressed navigation concerns in the Strait of Hormuz, a chokepoint through which roughly a fifth of global oil supply passes daily.

That memorandum of understanding collapsed by mid-June, with Trump citing Iranian violations as the cause.

On July 7, military action against Iran resumed. Trump formally notified Congress on July 13, triggering a 60-day window under which continued operations could proceed without additional Congressional authorization.

Bitcoin reacted almost immediately to the July escalation, dropping more than 2% to around $62,000. That move alone contributed to approximately $350 million in liquidations across crypto positions.

The geopolitical-crypto feedback loop

Repeated US-Iran tensions throughout 2025 and 2026 have caused Bitcoin and Ether to experience daily volatility moves ranging from 2% to 7%.

Following the July escalation, some signs of de-escalation did emerge, and Bitcoin subsequently recovered past $64,000. That roughly $2,000 swing in a matter of days illustrates just how tightly the asset’s short-term price action is tethered to geopolitical headlines.

What this means for investors

The $350 million in liquidations from the last escalation serves as a useful benchmark. Traders running tight stops or high leverage on long positions are essentially making a bet that diplomacy prevails.

During periods of sustained geopolitical tension, stablecoins tend to see increased inflows as traders park capital on the sidelines. Meanwhile, altcoins with thinner liquidity can experience even sharper drawdowns than Bitcoin.

One variable to monitor closely: the 60-day Congressional notification window from July 13. That clock is still ticking, and any expansion of military operations before it expires could happen without the political friction that typically slows things down.

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