JPMorgan strategists warned that escalating Middle East conflict poses a severe threat to global oil supplies. A prolonged blockade of the Strait of Hormuz could exhaust regional storage capacity in approximately 25 days. This scenario would force producers to shut down production once storage limits are reached.
The bank trimmed its 2026 non-oil growth forecasts for Gulf Cooperation Council (GCC) economies to reflect broader economic risks. Commodity analysts project Brent crude prices could surge into the $100-$120 per barrel range if supply disruptions exceed three weeks.
In response to heightened energy price risks, JPMorgan equity analysts recommended that investors buy European oil majors.