JP Morgan Struggles to Predict Oil Market Endgame Amid Iran Conflict

JP Morgan analysts are struggling to predict the outcome of the ongoing US-Israeli conflict with Iran, stating that they have no clear baseline view for oil markets since the start of the war.

The bank notes that at the beginning of the conflict, it assumed there were economic thresholds that the U.S. administration would not cross, but six months into the conflict, many of those lines have been crossed with no clear exit strategy in sight.

Oil prices have climbed above $100 a barrel, and gasoline is now at $4.37 a gallon, while US diesel prices have hit an all-time high of $6.31 a gallon heading into winter, the period of peak seasonal demand.