Israeli Defence Minister Israel Katz confirmed that US warplanes struck Iran from Israeli military bases, then declared a state of emergency at home. Bitcoin fell below $64,000 and $128 billion left the crypto market after the operation. President Donald Trump says Iran will not obtain a nuclear weapon while US-Iran negotiations continue.
Israel's Defence Minister Israel Katz confirmed that US warplanes conducted airstrikes on Iran using Israeli military bases as a launchpad. Crypto took a disproportionate share of the losses, with Bitcoin falling below $64,000 in the immediate aftermath.
The strikes began on February 28, 2026, and Israeli officials characterized them as pre-emptive. Katz then declared a state of emergency in Israel, signalling that the government considered the security situation severe enough to warrant extraordinary domestic measures.
Katz and Hegseth discussed ongoing operations on July 16
Katz spoke with US Defense Secretary Pete Hegseth on July 16, 2026 about the ongoing operations in Iran. That conversation confirmed the coordination between Washington and Jerusalem was part of an active military campaign rather than a one-off tactical decision.
Israel had already signalled its readiness for both independent and joint military action against Iran in the weeks leading up to the strikes. As a result, the February 28 operation did not surprise anyone who had watched the build-up.
$128 billion leaves the crypto market
The broader crypto market lost $128 billion in value following the US-Israeli military action. Ether also saw significant selling pressure, tracking Bitcoin's decline. Traders rotated out of risk assets broadly.
According to Crypto Briefing, a military operation in the Middle East can move Bitcoin by double-digit percentages within hours. The same outlet points to Katz's continued contact with Hegseth as a sign the conflict is not in a wind-down phase.
Trump says Iran will not obtain a nuclear weapon
But the diplomatic track has not closed. Trump stated that Iran will not obtain a nuclear weapon, highlighting recent productive discussions in comments made through a social media platform rather than a formal press release.
Negotiations run through US Chief Negotiator Mike Vance and Iranian Foreign Minister Javad Zarif, with mediators from Qatar and Pakistan also involved. Crypto Briefing lists military action by Israel or a policy shift by the US among the risks to the ongoing negotiations.
Sources: Crypto Briefing, Crypto Briefing
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