Iran’s Cryptocurrency Market Suffers Major Decline Amidst Escalating Tensions and Hack

The Iranian cryptocurrency market has experienced a significant downturn in 2025, with trading flows plummeting by 11% as tensions with Israel escalate and a major hack shakes confidence in local exchanges. According to blockchain analytics firm TRM Labs, Iran’s crypto transactions reached $3.7 billion between January and July, down sharply from last year’s levels. This decline was particularly pronounced in June and July when nuclear talks collapsed, a 12-day war with Israel, and power outages hit the country. TRM Labs attributed the downturn to a confluence of factors, including Israeli cyber and kinetic operations coupled with Iranian government shutdowns.