Jim Cramer Says Markets Are Taking A Page From Ronald Reagan's Cold War Strategy Amid Israel-Iran Tensions: '…Peace Through Strength'

CNBC’s ‘Mad Money’ host Jim Cramer drew a parallel between Ronald Reagan's Cold War-era “Peace Through Strength” doctrine and the current market sentiment surrounding the fragile Israel-Iran cease-fire.

What Happened: In an X post, Cramer suggested that markets are betting on a strategy where military strength deters aggression, amid ongoing tensions following Iran's missile launches earlier this week.

The remark comes as U.S. President Donald Trump announced a “complete and total cease-fire” between Israel and Iran on Monday, set to be phased in over 24 hours.

Reagan's “Peace Through Strength” philosophy, rooted in the 1980s, emphasized a robust military buildup to counter the Soviet Union.

Cramer's invocation of this doctrine suggests he sees parallels in today's geopolitical landscape, where a strong stance might influence market confidence.

Why It Matters: Despite Trump’s ceasefire announcement, the Foreign Minister of Iran, Syed Abbas Araghchi, refuted claims of a ceasefire, saying that there was "no agreement" for cessation of military operations, in a post on X.

These developments follow a wave of escalations earlier in the week, including U.S. airstrikes on Iranian nuclear sites and Iran’s retaliatory missile fire on a U.S. base in Qatar — an attack which, notably, reportedly caused zero casualties because Iran gave warning before, according to AP News.

Trump even “thanked Iran for giving us early notice,” calling the gesture peace‑oriented.

Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.81% at $605.03, while the QQQ advanced 1.07% to $537.35, according to Benzinga Pro data.