Israel and Iran exchanged missile fire for the second day in a row, intensifying regional tensions just weeks after a ceasefire agreement was reached on April 8. The conflict began when Iran launched missiles at Israel on Sunday in retaliation for an Israeli attack in Lebanon; the Israeli military reported it intercepted the missiles and responded with strikes on military targets in western and central Iran.

Geopolitical Tensions Escalate

The Islamic Major Guard Corps (IRGC) in Iran announced it had targeted Israeli air bases Nevatim and Tel Nof in response to attacks on radar sites within the country. The IRGC added that it is “ready for any scenario and for widespread operations on all fronts.” On Monday, both countries paused military operations, according to reports, following a tense exchange of fire that tested the fragile ceasefire. However, Iranian military leaders warned that any renewed Israeli offensive,particularly in southern Lebanon,could provoke an escalated response.

Trump Seeks Peace Deal Amid Volatility

U.S. President Donald Trump said on Monday that the ongoing strikes between Israel and Iran do not alter his goal of finalizing peace negotiations — Trump told the Financial Times that Israel’s Prime Minister Benjamin Netanyahu will have no choice but to accept a peace agreement with Iran. On Tuesday. Trump indicated that a new proposal on the Iran agreement could be announced within days, according to Reuters. Meanwhile, Israeli Prime Minister Benjamin Netanyahu stated that military operations against Iran and Hezbollah are ongoing, though he emphasized that both adversaries have been significantly weakened.

Market Reactions and Crypto Volatility

The renewed conflict has put pressure on cryptocurrency markets, but Bitcoin (BTC) hovers around $63,000, while Ethereum (ETH) and Ripple (XRP) remain in a bearish grip. The crypto Fear & Greed Index remains at 10, indicating extreme fear, up slightly from 8 the previous day. A steady increase in demand for risk assets is needed to support a recovery, with Bitcoin aiming to reclaim $70,000, Ethereum targeting $2,000, and XRP seeking to rise above $2.00. The market continues to react to geopolitical uncertainty, with persistent capital outflows affecting spot Exchange-Traded Funds (ETFs).