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Israel Rattles Crypto Markets with Defense Alert Level Hike Amid US-Iran Tensions

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Israel raised its defense alert level amid reports of potential US strikes on Iran, causing ripples in crypto markets. The move was prompted by fears that Tehran would retaliate against Israel.

The defense alert escalation occurred around July 22, following a series of joint US-Israeli strikes against Iranian assets earlier this year.

President Trump has urged restraint while weighing further military options, but the fragile ceasefire is now hanging by a thread. A disruption to oil flows through the Strait of Hormuz could spike energy prices and cascade through inflation expectations, central bank policy calculations, and the liquidity environment.

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