EL7.AI
StocksUpdated×2•Originally published 13 July 2026•Updated 14 July 2026•
1 min read

Markets Rebound on Cool US CPI Despite US-Iran Military Strikes and Hormuz Blockade

Key Facts

1Markets are preparing for the US Consumer Price Index (CPI) data release on Tuesday morning to assess inflation levels.
2Major banks are set to report their second-quarter earnings results during the current week.

In a dramatic convergence of geopolitical and economic shifts, US consumer prices fell for the first time since the pandemic, triggering a robust rebound across stocks, gold, and crypto markets. While the deflationary print was initially driven by lower energy costs, this trend now faces an immediate threat following direct military strikes between the US and Iran near the Strait of Hormuz according to reports.

The escalation into military conflict and the subsequent blockade on Iranian shipping have introduced sharp volatility into global markets, potentially jeopardizing the recent relief in energy prices. This US cooling contrasts with global data, including a 6.4% inflation rate in the Philippines on July 7, 2026, and a stable 1% in China per market data on July 9, 2026, creating a complex backdrop for monetary policy.

Investors are now weighing the sustainability of the market rally against the risk of a prolonged military conflict, with upcoming earnings from JPMorgan Chase serving as a key gauge for economic resilience. Markets remain hypersensitive to any shifts in the Fed's stance following the FOMC Minutes from July 8, 2026, as the blockade in the Strait of Hormuz threatens to reignite supply-side inflationary pressures.