$100 Oil Prices Could Persist Due to Uncertain War Outcomes

JPMorgan has issued a stark warning about $100 oil prices, stating that it cannot provide a clear path for how this crisis ends. Six months into the U.S.-Israeli war with Iran, JPMorgan's analysts say assumptions about economic pain have broken down.

The bank's warning goes beyond energy traders, as expensive fuel continues to squeeze household budgets and raise business costs. Weaker consumption has helped the world absorb a massive supply disruption, partly because demand has suffered.

Remaining inventories offer breathing room, but they didn't resolve the underlying conflict. JPMorgan says weaker demand is masking the oil shock, and that the market's resilience depends on shrinking demand and finite inventories.