U.S. Defense Secretary Pete Hegseth announced Thursday that an American submarine sank an Iranian warship in the Indian Ocean using a submarine-launched torpedo on Wednesday — the first such engagement since World War II. Hegseth declared the U.S. and Israel would achieve "full control" of Iranian airspace within a week, pushing the conflict closer to all-out war.
Iran Activates Long-Term War Plan
Iran’s official Fars News reported that the government has activated an emergency response plan for a potential prolonged war. Approved by the president, the plan coordinates all state agencies to secure basic supplies, maintain production, and maximize strategic allocation of infrastructure. Officials said Tehran is prepared for a protracted conflict.
European Allies Fracture Over Iran Role
Spain’s foreign minister José Manuel Albares directly denied the White House’s earlier claim that Madrid had agreed to cooperate in military operations against Iran. German Defense Minister Boris Pistorius told the Bundestag: “Germany is not a belligerent and will not take part in the war against Iran by the U.S. and Israel.” He warned that escalating the Middle East crisis carries huge risks, adding, “history shows starting a war is far easier than ending one.” The UK took a more ambiguous stance, with officials saying they “do not rule out” future participation in strikes against Iranian missile launchers, according to The Guardian. U.S. heavy bombers are expected to deploy to the UK’s Fairford base and Diego Garcia in the coming days to target Iran’s underground missile facilities.
Bitcoin Tests Safe-Haven Credentials Amid War Jitters
Cryptocurrency markets continued to act as a real-time gauge of geopolitical risk. Bitcoin swung violently between $66,000 and $74,000, briefly dipping below $66K at the peak of panic before snapping back. Its resilience outperformed U.S. equities over the same period. Global crypto futures open interest dropped 2% to $93.78 billion as some investors de‑levered, but total crypto market capitalization held steady at $2.3 trillion. The speed at which markets digested the shock — far faster than traditional finance — refocused attention on Bitcoin’s “digital gold” safe‑haven narrative.