Israel conducts two preemptive attacks on Iran, defense minister says

Israeli Defense Minister Israel Katz announced that Israel has carried out two preemptive attacks against Iran, adding that a third strike would follow if necessary.

What happened and why it matters

The first preemptive strike landed on February 28, 2026, targeting key military sites inside Iran. Israel simultaneously declared a nationwide state of emergency.

Katz justified the attacks as necessary to eliminate imminent threats to Israel. The IDF, he said, was positioned for independent operations within Iran.

By late June, Katz warned that Iran could trigger a full-scale war “within two days” if it launched missiles against Israel.

Crypto markets feel the tremors

Between February 28 and March 2, roughly $10.3 million in crypto assets left Iranian exchanges. Hourly outflows from those exchanges surged up to 873% above average in the period following the first strike.

Bitcoin dropped to around $63,000 on February 28 before staging a rebound to approximately $67,000. Ethereum fell to about $1,841 before climbing back with gains exceeding 6.5%.

Over $1 billion in crypto liquidations occurred in June alongside the heightened tensions.

The sanctions evasion elephant in the room

The conflict has also thrown a spotlight on Iran’s use of digital currencies to circumvent international sanctions. Estimated annual transaction volumes for this purpose range between $8 billion and $11 billion. Iran has reportedly leveraged Bitcoin and stablecoins as key instruments in this strategy.

What this means for investors

Traders should watch for two key signals. First, outflows from Iranian and Middle Eastern crypto exchanges serve as a real-time barometer of regional fear. The 873% surge in hourly outflows wasn’t just a statistic; it was thousands of individuals and entities making rapid decisions about risk. Second, liquidation volumes across major exchanges provide a measure of how much leverage the market is carrying into these shocks. The $1 billion in June liquidations suggests the market was overexposed heading into that particular round of tensions.

Military escalation in the Middle East, particularly involving the Strait of Hormuz, a chokepoint for global oil transport, has the potential to cascade through energy markets, traditional equities, and digital assets simultaneously.

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