President Donald Trump declared the US-Iran ceasefire over on Wednesday, reviving fears of a markets crash in July. Stock futures fell more than 1% while oil surged and gold climbed.

Wall Street’s early reaction suggests caution rather than panic. The bigger question is whether renewed war risk triggers a deep July sell-off, or whether investors have already built the danger into prices.

Wall Street Repeats a Familiar Risk-Off Script

The US struck more than 80 Iranian targets overnight after Tehran attacked three commercial vessels in the Strait of Hormuz, CENTCOM confirmed.

Iran’s Revolutionary Guard answered with claimed strikes on 85 US military facilities, activating air defenses in Bahrain and Kuwait.

The June truce died less than halfway through the 60-day window negotiators had set. Yet markets responded in orderly fashion. Dow futures fell 1.10%, S&P 500 futures lost 0.87%, and Nasdaq futures dropped 1.33% in early pre-market trading.

Money rotated out of stocks and into safer assets, the classic risk-off pattern.

Brent crude, the global oil benchmark, jumped more than 6% to $79 per barrel. Gold, a classic safe-haven asset, traded near $4,056. Bitcoin (BTC) traded near $62,170, down roughly 1.6% over the past 24 hours, according to BeInCrypto data.

Although Bitcoin initially dropped on Trump’s ceasefire remarks in Ankara, TradingView data showed index futures recovering part of the drop by the afternoon.

Is July Already Priced In?

Investors have traded this war since February, when Iran shut the Strait of Hormuz for the first time since the 1970s. The opening shock cut far deeper than Wednesday’s dip. The S&P 500 fell 5% in March, while global stocks outside the US lost more than 10%, according to Schwab data.

Since then, each truce has sparked a rally. June’s deal even lifted S&P 500 buy ratings to a record 60%.

However, Schwab strategists Michelle Gibley and Chris Ferrarone saw fragility behind that rebound in April. They argued the rally came mostly from traders unwinding bearish bets, not from any real peace.

“We do not view this as a moment to aggressively add risk,” the strategists wrote in the report, which flagged elevated volatility and headline-driven swings ahead.

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That defensive stance may explain Wednesday’s calm. Investors who had already braced for renewed strikes had less to sell, much as June’s Black Monday fears faded without a crash.

Why a Market Crash in July Hinges on Oil

Crude, not rhetoric, carries the risk of a recession. Brent’s climb this year was already the sharpest in over 40 years of CME Group records, per Schwab.

The firm’s scenario analysis keeps Brent between $75 and $100 in its moderate case, with no major correction. Its adverse case puts crude at $100 to $125 into the second half. That path brings deeper equity corrections and stagnation risk across Europe and Asia.

A severe outcome above $125 implies a global recession and a bear market, a fall of 20% or more in stocks. Veteran trader Dan Dicker already warns of a $135 oil shock. The strait normally carries about 20% of global oil products and 4.5% of world trade.

Tehran’s tone, meanwhile, leaves little room for quick de-escalation. Parliament Speaker Mohammad Bagher Ghalibaf struck a defiant note as the strikes continued.

“The era of bullying and extortion is over… It leads nowhere. We don’t fold,” Ghalibaf said.

July’s verdict now rests on tankers, not rhetoric. If Hormuz traffic and crude prices stabilize, the priced-in camp wins again. A sustained oil spike toward Schwab’s adverse range would hand markets their first true crash test of the summer.

Источник: BeInCrypto