Fighting between Iran and the US breaks out in the Strait of Hormuz; US stocks rally then pull back; Bitcoin falls back to $80,000.

US stocks slid back after strong gains on Thursday (5/7). While the S&P 500 and the Nasdaq both hit record highs during the day in tandem, all three major indexes turned black by the close as oil prices rebounded from their lows and the escalating Middle East conflict made investors uneasy.

Over the past 24 hours, the crypto market fell 1.23% to $2.66 trillion. The main driver was profit-taking after Bitcoin (BTC) surged strongly, though the Fear & Greed Index remained in the neutral zone at 47.

Iran-Iraq fighting breaks out again in the Strait of Hormuz

According to CNBC, the United States and Iran exchanged fire in the Strait of Hormuz, with both sides claiming the other initiated the attack. The renewed outbreak of hostilities further jeopardized the two countries’ ceasefire agreement, which had already been severely damaged as both sides repeatedly accused each other of violating its terms.

In a statement, the U.S. Central Command said that later on Thursday night, when three U.S. Navy destroyers passed through the strait, its forces “intercepted what it described as an unwarranted Iranian attack and responded with defensive strikes.”

But President Donald Trump insisted that the ceasefire is still in effect, saying the attacks were “just a quick wave.” He reiterated, however, that if Iran does not agree to a nuclear deal, it will face further attacks.

US stocks pull back from highs

US stocks slid back after strong gains on Thursday (5/7). While the S&P 500 and the Nasdaq both hit record highs during the day in tandem, all three major indexes turned black by the close as oil prices rebounded from their lows and the escalating Middle East conflict made investors uneasy.

On the economic data front, initial jobless claims at the beginning of last week rose slightly after falling to near the lowest level in decades, indicating that layoff levels remain moderate. Employment data expected to be released on Friday is forecast to show nonfarm payrolls will post back-to-back monthly growth for the first time in nearly a year.

Bitcoin slips to $80,000

Over the past 24 hours, the crypto market fell 1.23% to $2.66 trillion, mainly due to profit-taking after Bitcoin’s strong rally.

This week, U.S. spot BTC ETFs saw net inflows of $1.05 billion, with roughly $3.8 billion in cumulative inflows over five weeks, and total assets under management reaching $108.76 billion, setting a new all-time high. Market observers noted that the characteristics of this buying round were not purely delta-neutral arbitrage, but rather real spot demand—as multiple institutions have gradually unwound existing hedged short positions and shifted to net long exposure.

(U.S. BTC spot ETFs attract inflows for five straight weeks, $1.05 billion last week, total assets surge to $108.7 billion)

As US stocks broadly pulled back yesterday, Bitcoin briefly dipped to $79,500, reflecting a natural cooling of market momentum and traders’ cautious sentiment. The Fear & Greed Index remains in the neutral zone at 47.

This article Iran-Iraq fighting breaks out again in the Strait of Hormuz, US stocks slid back after strong gains, Bitcoin slips to $80,000 first appeared on Chain News ABMedia.