JPMorgan warns oil market is unpredictable due to Iran conflict

JPMorgan Chase analysts have stated that the oil market has become unpredictable due to the ongoing conflict involving Iran. According to a recent study, several economic ‘red lines’ have been crossed, including crude oil prices exceeding $100 per barrel and record-high diesel prices in the United States.

Despite an estimated supply loss of ten million barrels per day, oil prices have not risen as sharply as expected, largely due to a global decline in demand. Analysts noted that the market has focused more on falling consumption—which has decreased by approximately 4.4 million barrels per day compared to last year—than on the depletion of inventories.

However, the bank warned that prices could rise further if supply disruptions in the Middle East persist. While current inventories in China, Europe, and Japan serve as a buffer, these reserves could eventually run low. Market participants remain uncertain about the duration of the conflict and its potential to derail global economic growth and fuel inflation.