JPMorgan Faces Volatility as Oil Slides to $94 and Fed Warns on Inflation
Iran’s top diplomat met Pakistani officials while US envoys remained sidelined, in an eight-week naval blockade that halted 20% of global oil flows and drove US crude to $94 and Brent to $105. Former Fed Governor Kevin Warsh warned persistent inflation is blocking rate cuts that could pinch bank margins.
1. Iran-Pakistan Diplomatic Talks Stall Direct US Negotiations
Iran’s top diplomat Abbas Araghchi held discussions solely with Pakistani officials to relay Iran’s observations, while US envoys arrived without scheduled meetings, extending an eight-week impasse that has halted much of Strait of Hormuz shipping.
2. Crude Oil Prices React to Blockade
The ongoing naval blockade cut off roughly 20% of global oil and LNG flows, sending US crude down to $94 per barrel and Brent above $105, and helped fuel the S&P 500’s longest weekly advance since 2024.
3. Inflation Concerns Threaten Bank Profitability
Former Federal Reserve Governor Kevin Warsh cautioned that elevated inflation makes rate cuts unlikely, a scenario that could compress net interest margins at major banks including JPMorgan.