'We simply don't know' - JP Morgan struggling to forecast oil prices due to Trump's war with Iran
The bank said it "assumed" there would be economic red lines, like oil at $100 a barrel, that the US would be unwilling the cross.
Investment banking giant JP Morgan has said it is struggling to predict how oil prices will be impacted by the US-Iran war, telling investors in a rare note that "we simply don't know how to model the endgame".
The bank said it assumed at the start of the conflict that there would be "economic red lines" that the Trump administration would be unwilling to cross, and therefore it believed a deal would have been struck to open up the Strait of Hormuz shipping lane back in June.
It said such red lines included oil prices rising above $100 a barrel, inflation reaching 4%, gasoline topping $5 a gallon and rates on 10-year government borrowing hitting 5%.
"For the first time since the start of the Iran conflict, we don't have a baseline view. We simply don't know how to model the endgame."