Bitcoin, XRP slide amid mixed Iran attack reports

The United States military moved to assert control over the Strait of Hormuz on May 4.

A new operation dubbed "Project Freedom" was launched to escort commercial vessels through the critical waterway after Iran effectively brought global shipping to a standstill. 

President Donald Trump announced the initiative a day earlier via TruthSocial, promising that the U.S. would guide ships from countries uninvolved in the Middle East conflict safely out of the strait.

Related: Iran sets strict terms for ships crossing Hormuz after ceasefire

The operation mobilized a formidable force of 15,000 service members, guided-missile destroyers, more than 100 land and sea-based aircraft, and multi-domain unmanned platforms. 

Central Command confirmed that two U.S.-flagged merchant vessels completed the transit as a first step in the mission, with Navy guided-missile destroyers operating in the Arabian Gulf in support.

However, the announcement was met with an aggressive Iranian response. 

Tehran issued a new map and a series of statements reasserting its control over the strait. 

Iranian army public relations claimed its naval forces had prevented American destroyers from entering the strait's vicinity, with state media further alleging that two missiles struck a U.S. ship near the entrance. 

The U.S. military flatly denied both claims. 

"No U.S. Navy ships have been struck," Central Command said. "U.S. forces are supporting Project Freedom and enforcing the naval blockade on Iranian ports."

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UAE condemns drone attack on ADNOC tanker

The confrontation escalated further with the United Arab Emirates (UAE) accusing Iran of launching a drone attack on an empty crude oil tanker belonging to Abu Dhabi state oil firm ADNOC as it attempted to pass through the strait. 

ADNOC's maritime logistics unit confirmed its vessel, the Barakah, was struck by two drones, though no injuries were reported, given the ship was uncrewed at the time.

The UAE Ministry of Foreign Affairs issued a sharp condemnation, calling the strike a "flagrant violation" of UN Security Council resolution 2817, which upholds freedom of navigation. 

The ministry accused Iran's Revolutionary Guard Corps of acts of piracy, warning that using the strait as a tool of economic coercion posed a direct threat to regional stability and global energy security. 

The UAE demanded that Iran immediately cease all hostilities and unconditionally reopen the waterway.

Related: US national debt surges to $38 trillion as Iran war shadows FOMC decision

Crypto prices slip as risk sentiment sours

The escalating uncertainty weighed on digital asset markets. Bitcoin (BTC) retreated from an early morning high of $80,322 to trade at $78,693, roughly flat over 24 hours.

XRP slipped 0.4% to $1.39, while Solana (SOL) mirrored that decline at $83.79. Ethereum (ETH) held relatively steady, edging up 0.2% to $2,331.70, though broader sentiment remained cautious as traders monitored developments in the strait.

Meanwhile, WTI crude oil prices jumped 5% upon the news before stabilizing near $102.6 per barrel. Brent oil was up over 1.9% and trading at $110 per barrel.

Traditional markets also reacted to the mixed report. Dow Futures fell 0.33%, S&P 500 futures was down 0.13%, while Nasdaq futures remained above water slightly but mostly flat.

Related: Iran ceasefire wipes out millions in short liquidations