Markets plummeted as US military reportedly attacked Iranian oil tankers in the Strait of Hormuz.

Oil prices fell sharply on Thursday after reports emerged that U.S. forces fired on an Iranian oil tanker near the Strait of Hormuz, raising concerns about the risk of greater tensions in the Middle East and sending cryptocurrencies into a volatile trading session.

Iranian state media reported that the US military attacked an Iranian-flagged oil tanker, and Iran retaliated by launching missiles at a US naval unit in the Strait of Hormuz. US authorities confirmed a collision with an Iranian vessel but denied that a US warship was hit.

US-Iran tensions shake global markets.

According to Iranian news agencies such as IRIB and Fars News Agency, Iran fired missiles at a US Navy ship following an incident involving an oil tanker. Tehran stated that this was in retaliation for what it called US aggression in the region's waters.

Meanwhile, the US Central Command confirmed that US forces fired warning shots and then neutralized the oil tanker because it was suspected of failing to comply with orders and attempting to bypass a blockade related to the conflict between the US and Iran.

The Strait of Hormuz is one of the world's most crucial energy choke points , accounting for approximately 20% of global oil and liquefied natural gas shipments. Any disruption would have a significant impact on energy prices, inflation expectations, and investor sentiment in general.

Bitcoin fluctuates sharply along with oil prices.

This geopolitical shock quickly spread to the digital asset markets. Bitcoin and many major altcoins initially fell as traders cut risk amid fears of further escalation of hostilities.

However, the crypto market has stabilized again as oil prices reversed their sharp decline, with some experts assessing this as merely a short-term correction rather than a long-term change in demand.

Oil traders are also beginning to XEM whether this latest confrontation will have a major impact on oil shipping or remain merely a localized military tension.

The rapid drop in oil prices has taken some experts by surprise, as they had predicted a decrease in oil supply and an immediate sharp increase in prices.

Investors are currently closely monitoring further statements from Tehran, Washington, and the US Central Command to XEM the situation will escalate or de-escalate.

Once there is any confirmation that shipping activity in the Strait of Hormuz has been disrupted, it is highly likely that the oil, stock, and crypto markets will experience significant volatility again.