Markets Fall as Oil Prices, Iran Tensions & Inflation Weigh on Investors

Global financial markets absorbed a combination of company-specific shocks, geopolitical escalation and softer US inflation data on 14 July 2026. IBM suffered its steepest share-price decline in decades, SpaceX closed only slightly above its initial public offering price, and oil prices remained sensitive to developments involving Iran and the Strait of Hormuz. US equities were volatile, while the latest US Consumer Price Index report showed inflation easing more sharply than economists had expected. 

TL;DR

• IBM shares plunged more than 25% after releasing preliminary earnings that missed market expectations, marking the company's biggest one-day decline in decades.

• SpaceX shares fell to just above their IPO price, extending losses from their post-listing peak.

• Oil prices remained near a one-month high as markets monitored renewed tensions between the US and Iran and developments around the Strait of Hormuz.

• US-Iran tensions escalated after Iran launched strikes against regional targets following continued US military operations and the resumption of a blockade on Iranian shipping.

• US inflation cooled more than expected in June, with headline CPI falling on a monthly basis and annual inflation slowing, supporting broader US equity markets despite geopolitical uncertainty.

Key Developments

IBM Shares Record Historic Decline After Preliminary Results

IBM shares closed more than 25% lower on Tuesday, 14 July, marking the company’s worst one-day decline since at least 1968. The technology group released preliminary quarterly results that fell well below Wall Street expectations, sending its shares down to approximately $217.07 at the close. 

Yahoo Finance reported that IBM’s preliminary figures reflected delays involving major transactions and changes in how corporate customers were allocating technology budgets. The announcement also affected sentiment towards parts of the wider software industry as investors assessed whether spending was shifting towards artificial-intelligence infrastructure, servers and cybersecurity products. (Source: Yahoo Finance)

SpaceX Closes Just Above Its IPO Price

SpaceX shares fell 2.2% on Tuesday to close at $136.08, only $1.08 above the company’s $135 IPO price. The decline left the stock close to erasing the gains recorded since its public-market debut in June, when the company completed what Yahoo Finance described as the largest initial share sale on record.  

The Elon Musk-led aerospace, satellite and artificial-intelligence company has fallen by approximately one-third from its post-listing high, removing nearly $850 billion from its peak market value. SpaceX had ended its first trading session at about $161 per share, nearly 20% above the offer price, before the subsequent decline brought the shares back towards their original valuation.  

Oil Remains Near a One-Month High

Crude oil traded near its highest level in about a month as investors monitored renewed military activity involving the United States and Iran. Earlier trading had been influenced by President Donald Trump’s announcement that the US would reinstate a blockade of Iranian shipping and initially seek a 20% charge on cargo moving through the Strait of Hormuz. 

The proposed cargo charge was subsequently withdrawn, reducing some immediate market pressure. However, oil remained supported by concerns about shipping security and the possibility of disruptions affecting one of the world’s most important energy transit routes. West Texas Intermediate crude settled at $79.34 a barrel on 14 July, while Brent remained above $84 in subsequent trading. 

US-Iran Strikes Continue 

Iran’s Islamic Revolutionary Guard Corps said it had targeted US-linked military and logistical installations in Bahrain and Kuwait early on Wednesday, 15 July. The statement followed a fourth consecutive night of US strikes against Iran and the reinstatement of the American blockade of Iranian shipping around the Strait of Hormuz. 

Iran said the attacks were a response to US military action and attempts to control the Strait of Hormuz. The Revolutionary Guard also warned that continued efforts to restrict regional oil and gas exports could lead it to target additional energy infrastructure serving US and allied interests. Trump separately threatened further strikes against Iranian power facilities unless Tehran reached an agreement with Washington. 

June US Inflation Falls More than Expected

The US Consumer Price Index (CPI) fell by 0.4% in June, representing the first monthly decline since the early stages of the COVID-19 pandemic. Annual inflation slowed to 3.5% from 4.2% in May and came in below the 3.8% rate expected by economists. 

Core CPI, which excludes food and energy, was unchanged from the previous month and increased by 2.6% over the year. Falling energy costs were the main contributor to the headline decline, with the energy index dropping 5.7% and petrol prices falling 9.7% during June. Food prices, by contrast, increased by 0.2%. 

Inflation Data Supports US Stocks

The softer inflation figures supported sentiment towards US equities, particularly growth and technology shares represented in indices such as the Nasdaq 100. The Nasdaq 100, the S&P 500, and the Dow Jones Industrial Average finished Tuesday higher.  

Geopolitics and Energy Complicate the Inflation Picture

June’s CPI report showed that lower fuel costs provided meaningful relief to headline inflation. However, renewed military activity around Iran and the Strait of Hormuz has since pushed oil prices higher again, creating a contrast between the backward-looking inflation data and the current energy-market environment. 

Conclusion

The combination of a historic fall in IBM shares, SpaceX’s retreat towards its IPO price, changing inflation expectations and geopolitical risks surrounding global energy supplies left markets responding to several distinct drivers. Traders continued to monitor corporate results, US price data, the performance of major stock indices and further developments involving Iran and regional shipping routes.  

*Past performance does not guarantee future results. The above is for marketing and general informational purposes only, and are only projections and should not be taken as investment research, investment advice or a personal recommendation.