Market Roller Coaster as US and Iran Exchange Threats Against Electric Infrastructure

Global markets experienced extreme movements like a roller coaster following an escalation in the conflict between the United States and Iran due to mutual threats of attacks on both nations' electrical infrastructure. In a short timeframe, oil prices, gold, and crypto moved wildly, reflecting high uncertainty amid geopolitical tensions.

The situation intensified when President Donald Trump issued an ultimatum to Iran to open the Strait of Hormuz. If not, the US threatened to attack Iran's power plants, which are vital components of the nation's energy system.

Iran did not remain silent. Tehran immediately responded with much broader counterattack threats, including potential strikes against electrical, energy, and water infrastructure in the Gulf region. These threats escalated the risk of conflict from conventional military warfare to regional-scale infrastructure warfare.

As these mutual attack threats peaked, risk-off sentiment dominated. Investors began exiting risky assets like crypto, while safe-haven assets like gold experienced sharp gains. The surge in gold prices reflected market participants' efforts to seek protection amid geopolitical uncertainty.

On the other hand, oil prices moved extremely volatile. Concerns about supply disruptions due to potential conflict in the Strait of Hormuz, a waterway carrying approximately 20% of global oil, temporarily drove prices soaring. Bitcoin and other crypto assets also came under pressure during this phase, amid heightened global uncertainty and liquidity outflows from risky assets.

However, market direction changed drastically when Trump suddenly canceled plans to attack Iran's electrical infrastructure. This decision immediately triggered a rapid market reversal. Oil prices, which had previously surged, fell more than 10% in a single day, reflecting easing risks of global supply disruptions. Bitcoin experienced a significant rebound and surpassed $71,000, driven by returning investor risk appetite after war threats receded. This movement was also accelerated by short position liquidations in derivatives markets.

At the same time, gold also corrected after previously rising sharply. This decline occurred as investors exited safe-haven assets and re-entered risky assets.

Despite the market recovery, volatility is expected to persist. Uncertainty remains elevated as Iran denies any negotiations and maintains counterattack threats if attacked. In other words, markets are currently moving in conditions highly sensitive to every political statement. Oil, gold, and crypto are now increasingly interconnected with global geopolitical dynamics.