Bitcoin and other cryptocurrencies tumbled after Israel launched airstrikes on Iran, escalating regional tensions.

The leading digital asset fell as much as 3% early Friday in Singapore, slipping below US$103,000, while smaller tokens posted even steeper losses, Bloomberg data showed.

Second-ranked cryptocurrency Ether slumped as much as 6.9% following reports of explosions in Tehran, local media said.

Israeli Defense Minister Israel Katz declared a special state of emergency, describing the airstrikes as a “preemptive strike against Iran.”

He added that Israel is bracing for a retaliatory attack involving drones and missiles.

“Crypto is reacting negatively to news of Israel strikes in Iran, in line with major risk assets,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. “We expect to see technical support around US$101,000, but geopolitical news will drive price action from here in the short-term.”

Stocks and equity-index futures fell sharply as investors sought safety in havens like U.S. Treasuries following Israel’s airstrikes on Iran.

Crude oil surged more than 9%, while gold also climbed amid the heightened geopolitical tensions.

“While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend,” Tony Sycamore, market analyst at IG, said in a note.

Bitcoin was trading at US$103,130 as of 9:40 a.m. Friday in Singapore.