Israel threatens full-force retaliation against Iran as crypto markets brace for impact

Israeli Defense Minister Israel Katz declared on July 19, 2026, that Israel would “attack them with full force” if Iran fires missiles at the country. The statement followed an Iranian missile interception and comes against a backdrop of repeated ballistic missile and drone attacks launched by Tehran toward Israeli targets throughout 2026. Sanctions hit IRGC crypto wallets On July 1, 2026, Katz signed sanctions targeting 37 crypto wallets linked to Iran’s Islamic Revolutionary Guard Corps. The wallets were valued at over NIS 24 million, roughly $6.5 million at current exchange rates. Israel is telling exchanges and compliance teams worldwide that facilitating IRGC-linked transactions carries consequences. Exchanges operating in jurisdictions that respect Israeli sanctions may need to implement additional screening, which could reduce liquidity for certain trading pairs or corridors. Bitcoin’s war-time trading pattern During the June 2025 “Twelve-Day War,” Bitcoin experienced initial declines as conflict news broke. The pattern repeated in February 2026 when US-Israel strikes on Iran sent Bitcoin tumbling to between $63,000 and $64,700. It then recovered to $68,000 after reports eme...