Wall Street Stumped on Oil Market Amid Ongoing Iran Tensions

Wall Street analysts are struggling to predict what will happen in the oil market due to ongoing tensions between Iran and the US. In a rare admission, JPMorgan stated that they 'don't know' how to model the endgame of the conflict, which has led to record-high oil prices.

According to Natasha Kaneva's team at JPMorgan, many economic red lines have been crossed, including oil above $100 and a 10-year yield with a 5-handle. Despite this, oil futures are hovering around $100, which is lower than expected by some analysts.

The Iran conflict has led to higher prices for diesel fuel, which is a major concern as Russia is a significant refiner of diesel fuel. Ukraine's attacks on Russian refineries have severely curtailed the global supply of diesel fuel, sending nominal diesel prices to record highs.