JPMorgan has said the uncertainty surrounding the conflict involving US President Donald Trump and Iran is making it difficult to forecast where oil prices could go.
The bank said it had previously assumed there would be economic red lines that the United States would be unwilling to cross. One example was oil reaching $100 a barrel, which had been viewed as a possible threshold for US decision-making.
However, JPMorgan said it now could not be certain that such limits would hold. The comments underline the difficulty of assessing the potential impact of the conflict on energy prices when the bank’s earlier assumptions about economic constraints are no longer considered reliable.
No specific oil-price forecast or timeline for the conflict was provided in the supplied material. The bank’s latest position is that the outlook remains highly uncertain.
