Here's a simple market truth from JPMorgan Chase & Co. (JPM) CEO Jamie Dimon: the jitters aren't going away until the shooting stops. Speaking on Tuesday, Dimon said global markets will remain volatile until the conflict with Iran concludes. While he noted the underlying economy remains resilient, the geopolitical environment is giving everyone a case of the nerves.
"The markets will be concerned until it's over," Dimon told "FOX & Friends." He emphasized that the successful completion of the war is more critical than whatever the S&P 500 does tomorrow or next week. In other words, don't look for a calm market until there's a resolution on the ground.
Hoping for Open Waters
The ongoing conflict has thrown a wrench into global trade, specifically the crucial Strait of Hormuz. Dimon noted that traders and investors are currently pricing in the risk of things getting worse before they get better.
"We should all hope that… we win this thing and clean up the straits and that Iran is no longer a threat to everybody," Dimon said. It's a straightforward hope: a return to normal shipping lanes and one less geopolitical flashpoint.
A Presidential Ultimatum
Dimon's warnings come as President Donald Trump takes a notably hard line. On Monday, Trump warned Iran that the U.S. could destroy its key infrastructure—think oil wells and power plants—if the Strait of Hormuz is not reopened immediately.
While Trump expressed some optimism about talks with Iran's new regime to halt military operations, he cautioned that failing to reach a deal soon would carry severe consequences. He even resurfaced a 1987 interview where he suggested the U.S. should "grab" and "keep" Iranian oil installations if attacked, a sentiment that underscores the current high-stakes posture.
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