JPMorgan Abandons Baseline View on Oil Markets Amid Iran Conflict

JPMorgan Chase has lost its baseline view on oil markets due to the ongoing conflict between the US and Iran. Analysts at the bank have stated that they no longer know how to model the endgame for the conflict.

The bank initially assumed certain economic thresholds would not be crossed by the US administration, but six months into the conflict, many of those lines have been crossed with no clear exit strategy visible.

Oil prices have climbed above $100 per barrel, with gasoline reaching $4.37 per gallon and US diesel prices hitting an all-time high of $6.31 per gallon heading into winter, the period of peak seasonal demand. Inventories are at all-time lows.