Bitcoin Falls Below $78,400 as Iran Warns of Military Strike as Donald Trump Launches Hormuz Escort Mission

Bitcoin slipped below the $78,400 level as escalating tensions between Iran and U.S unsettled global markets.Donald Trump has announced a new naval operation, “Project Freedom,” aimed at guiding stranded commercial vessels out of the Strait of Hormuz, a critical global shipping route. The mission is expected to begin immediately, with U.S. forces assisting ships described as “neutral and innocent bystanders” facing supply shortages and deteriorating onboard conditions.

According to U.S. Central Command, the operation will support merchant vessels seeking safe passage, emphasizing its importance for both regional stability and the global economy.

Iran Warns of Military Response to US Presence

Iranian officials have issued strong warnings against any U.S. military involvement in the strait. Ebrahim Azizi stated that foreign interference would violate the existing ceasefire and could trigger a direct response. Iran’s military has indicated it may target U.S. forces if they attempt to enter or approach the waterway.

Rising Tensions Threaten Fragile Ceasefire

The situation adds pressure to a fragile ceasefire established in early April. While Washington frames the mission as humanitarian, the lack of clarity around coordination with Tehran raises the risk of escalation, particularly in a region already strained by ongoing geopolitical tensions.