Rising tensions in the Middle East negatively impact markets: Sharp decline in crypto

Tensions in the Middle East reached a peak last night with a statement made on Iranian State Television. An anchor on Iran's Channel 3 television said during a live broadcast, "The world will witness very important developments in the coming hours."

The rise in tension in the Middle East has also affected global markets.

Following the killing of Hamas leader Haniyeh, all eyes have turned to Iran. An anchor on Iran's Channel 3 television made the statement, "The world will witness very important developments in the coming hours," during a live broadcast last night (August 2).

Following the successive statements, airlines suspended their flights, particularly to Lebanon and Israel. The US, meanwhile, decided to send warplanes and ships to the region.

RECESSION CONCERNS ARE GROWING

According to a report on NTV, another factor affecting the markets was data coming from the US. The fact that employment growth in the US remained below expectations in July deepened concerns regarding a recession.

Non-farm payrolls in the US increased by 114 thousand in July, coming in below expectations. The country's unemployment rate rose from 4.1 percent to 4.3 percent in the same period. Analysts, stating that the employment data points to a faster-than-anticipated deterioration in the labor market, reported that this has increased concerns that the economy could be dragged into a recession.

US STOCK MARKET FELL SHARPLY

Indices in the US lost nearly 2 percent in value. The Dow Jones index fell by 1.51 percent to 39,737 points.

While the S&P 500 index declined by 1.84 percent to 5,346 points, the Nasdaq index fell by 2.45 percent to 16,773 points.

Among technology stocks, Intel's loss was notable. Intel shares lost 26.1 percent of their value after the company announced that its revenue had decreased during this period and that it would be laying off employees. Amazon shares also fell by 8.8 percent after its balance sheet failed to meet expectations.

OIL SALES ACCELERATED

Expectations of war in the Middle East have increased supply concerns for oil. Brent crude oil fell by 3.4 percent to 76.80 dollars. Thus, it saw its lowest level since February. Crude oil fell by nearly 4 percent to 73.52 dollars.

SHARP DECLINE IN CRYPTOCURRENCIES

The cryptocurrency market also turned red. Bitcoin recorded a decline of nearly 4 percent in the last 24 hours and pulled back to 61 thousand 684 dollars.

The market's second-largest asset, Ethereum, fell to 2,981 dollars with a loss of over 5 percent.

Double-digit losses were seen in other altcoins. Solana lost 18 percent, BNB 8 percent, XRP 4 percent, Dogecoin 15 percent, and AVAX 17 percent of their value.