What happens if US-Iran Ceasefire Collapses in Middle East

A US-Iran ceasefire breakdown before June 7 would immediately elevate Middle East tensions, threatening oil supply routes through the Strait of Hormuz. Energy markets would price in a geopolitical risk premium, with crude oil futures likely spiking 10-20% on supply disruption fears. Defense contractors and energy producers would benefit, while broader equity markets face volatility from uncertainty and potential inflation pressures.

A US-Iran ceasefire breakdown before June 7 would immediately elevate Middle East tensions, threatening oil supply routes through the Strait of Hormuz. Energy markets would price in a geopolitical risk premium, with crude oil futures likely spiking 10-20% on supply disruption fears. Defense contractors and energy producers would benefit, while broader equity markets face volatility from uncertainty and potential inflation pressures.