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Cryptocurrency prices fell Saturday evening after Iran launched a wave of drones at Israel, marking an early indication of the turmoil that could hit markets as investors start to price in the threat of a broader war in the Middle East.

Bitcoin was down 5% from its price on Friday, while Ether sank more than 7%, and XRP tumbled 13.5%, according to CoinMarketCap. Thats a sign risk assets will be under pressure.

A fuller picture of Wall Streets reaction to Irans first-ever, full-scale military assault on Israel will come on Sunday evening, when futures trading opens in the U.S. for stocks, bonds, commodities, and currencies.

Trading on Friday offered somewhat of a preview on what to expect. Reports at the time said an Iranian attack on Israel was expected within two days, boosting U.S. benchmark oil prices as much as 3% to top $87 a barrel.

U.S. Treasury bonds also rallied sharply, sending the 10-year yield down as much as 10 basis points as investors looked for safety.

Similarly, the U.S. dollar advanced as geopolitical tensions caused investors to turn away from riskier emerging-market currencies.

Even the euro fell to a five-month low against the greenback, as markets also weighed the prospect of the European Central Bank cutting rates before the Federal Reserve does.

Meanwhile, prices for goldtraditionally seen as another safe-haven assetsurged to a fresh record high above $2,400 an ounce before later reversing those gains late Friday.

Stocks sold off on Friday, led by risk-on tech shares, as investors also digested bank earnings and fresh inflation data that further dampened hopes for imminent Fed rate cuts.

Mideast tensions have been ramping up since militants backed by Iran attacked Israel in October. Other Iranian-backed groups in Lebanon, Iraq, Syria, and Yemen have also launched rockets at Israel.

More recently, Tehran blamed Israel foran April 1airstrike in Syriathat killed two Iranian generals, though Israel hasnt addressed it.

With Iran attacking Israel, the risk grows that the U.S.Israels most important military allycould be also be drawn into direct engagements with Iran. On Saturday, the White House vowed to support Israels defense, after moving more Navy ships toward the region in anticipation of an attack.

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Markets flash early signs of risk from wider Mideast war as crypto prices sink after Iran launches wave of drones at Israel - Fortune