Cramer: Market ‘miserable’ as oil, tariffs and Fed bite

Jim Cramer called the market ‘miserable’ on July 21 as oil surged and uncertainty around tariffs and Federal Reserve policy weighed on stocks.

West Texas Intermediate crude jumped 9.4% to settle at $78.14 a barrel after President Trump reimposed a naval blockade on the Strait of Hormuz. The strait carries roughly one-fifth of the world’s seaborne oil and raised concerns about possible supply disruptions. Trump initially proposed a 20% fee on cargo passing under U.S. protection before abandoning that demand in favor of other investment commitments from Gulf states.

The single-day oil gain ranked among the largest moves for the commodity so far this year. Repeated flare-ups in the Middle East have coincided with sharp oil moves that have unsettled equity markets, producing quick spikes followed by partial retracements when tensions eased.

Tariff-related price rises added pressure on lower-income households facing persistent inflation. Higher borrowing costs are affecting rate-sensitive sectors; Cramer described Home Depot as a great ‘house’ trapped in an awful ‘neighborhood’ of high financing costs.

Monetary policy offered limited relief. The Federal Reserve kept its target range at 3.50% to 3.75%. New Fed Chair Kevin Warsh moved the central bank away from forward guidance, stating that policy will be data-dependent. About half of Fed officials indicated that at least one quarter-point rate increase could be needed before the end of 2026.

Those signals reversed earlier expectations for rate cuts and prompted reassessments of valuations in interest-rate-sensitive sectors, including growth stocks that have been vulnerable during recent selloffs.

Cryptocurrency markets tracked the broader risk-off tone; bitcoin traded near $65,000 on July 20 in what analysts described as a mixed and directionless stretch for crypto prices.

Market moves in the near term will depend on developments in the Strait of Hormuz and how market participants interpret the Fed’s data-driven stance at upcoming policy meetings. Political reversals during the week have already produced rapid swings in oil and equity prices.

Since March, the pattern of oil spikes tied to Middle East tensions and subsequent equity pullbacks has repeated several times, keeping markets sensitive to geopolitical and policy news.