America and Israel’s ongoing war against Iran has sunk the global economy so deeply in the mire that economists are now seemingly throwing down their pencils in frustration. On Thursday, for the first time since the start of the conflict, analysts at JPMorgan said they don’t have a baseline view of oil markets.
“We simply don’t know how to model the endgame,” Natasha Kaneva, head of the company’s global commodities strategy, said in a note. According to CNBC, analysts at JPMorgan assumed there were some economic red lines the U.S. simply would not cross in the conflict, and that President Donald Trump would eventually be forced to reach a deal with Iran. But close to seven months after the war began, most of those red lines — including oil hitting more than $100 a barrel, gasoline nearing $5 a gallon at the pump or 10-year Treasury yields rising above 5% — have already been crossed, and “the exit strategy is less clear, not more,” in Kaneva’s words.
