Today’s Market Watch: Middle East situation keeps escalating; the market still needs to stay cautious

Good morning, everyone—today is Friday. Let’s take a look at what market news from last night is worth paying attention to.

The biggest factor affecting the market right now is still the Middle East situation. Trump has once again sent a tough signal recently, saying he is seriously considering launching a larger-scale military strike against Iran, and that a decision is close to being made. He also warned that if the Yemeni Houthi forces continue to attack international commercial ships, the U.S. will hold Iran responsible and take even harsher military action. In addition, Trump said that if ships or cargo suffer losses due to related attacks, the U.S. may use Iranian funds under its control to compensate.

There are also divisions within the U.S. Senate rejected a resolution to limit Trump’s war powers against Iran, while the House of Representatives passed a similar resolution. This means that inside the U.S., there are still different voices on whether to further expand military actions, but Trump still retains significant decision-making space afterward.

Iran also maintains a tough stance, refusing the ceasefire plan proposed by the U.S., and claims it attacked U.S. military facilities in Jordan and Kuwait. Iran also announced that it is closing and strictly restricting passage through the Strait of Hormuz. Although shipping volume through the strait has clearly declined so far, it has not been fully interrupted, and further monitoring is still needed.

In addition, the U.S. tariff policy has seen new developments. The U.S. announced a new round of tariff measures on some trade partners. While the overall tax rate changes are not large, it shows that the U.S. trade protection policy is still being pushed forward. If major economies take retaliatory measures afterward, global trade frictions may further escalate, which could affect corporate costs, global supply chains, and market risk appetite.

For the market, the situation today is one where geopolitical risk and tariff-policy disruptions are both present. The Middle East situation affects crude oil prices and safe-haven sentiment, while tariff policies may further raise inflation expectations—also implying that the Federal Reserve’s future monetary policy still faces significant uncertainty.

Turning to the crypto market, Bitcoin is still trading sideways around $65,000, and the rebound strength remains limited; overall market funds are still mostly in a wait-and-see mode.

From the trend, continuous consolidation indicates that neither bulls nor bears have formed a clear advantage for the time being. But the longer the sideways range lasts, the higher the probability that the subsequent move will be downward. With the current macro environment still full of uncertainties, once key support is broken, traders still need to be alert to the risk of further pullbacks in the short term.

Personally, I think the overall market today remains predominantly weak consolidation. Key levels to watch:
BTC: support near $63,500;
ETH: support near $1,820;
SOL: support near $73.5.
$BTC ‌$ETH ‌$SOL ‌