"The idea that everything will finally go right in the Middle East seems like a real stretch to me," Cramer said.

A relief rally was spurred by Iran's agreement to a two-week ceasefire.

Stock futures surge and oil prices plunge as the Trump administration and Tehran agree a 2-week ceasefire.

The fragile ceasefire agreement is likely to face significant challenges, analysts told CNBC, citing a significant trust deficit on both sides.

Cramer says Wednesday's rally is a good indicator of what stocks to buy and which to avoid.

The Iran-U.S. ceasefire has lifted markets, but some cracks are already showing in the 'fragile truce.'

The Iran-U.S. ceasefire has lifted markets, but there remains massive disagreements over the Strait of Hormuz.

"The idea that everything will finally go right in the Middle East seems like a real stretch to me," Cramer said.

Although the market rally cooled on Friday, the S&P 500 still ended the week 3.6% higher.

In his Sunday column, Jim Cramer explored key battleground issues for the stock market such as the Iran war and software sell-off.