Jamie Dimon has issued a stark warning that the Iran war could send inflation surging again and deal a fresh blow to financial markets.
The JPMorgan boss said rising oil and commodity prices risk pushing up the cost of living – and forcing interest rates higher just as Americans were hoping for relief.
That combination could hit everything from mortgage rates to stock portfolios.
In his annual letter to shareholders, he warned that while peace is the goal, the current risks could trigger a recession with falling asset prices, job losses and market swings.
But the biggest danger, Dimon said, is that inflation starts creeping back up after months of cooling.
‘The skunk at the party – and it could happen in 2026 – would be inflation slowly going up,’ he wrote.
‘This alone could cause interest rates to rise and asset prices to drop.’
Dimon also warned that the war in Iran could have ‘unpredictable’ effects on energy and commodity markets – potentially driving up prices for products like fertilizer and helium, which in turn could strain US agriculture and even the food supply.
Jamie Dimon has issued a stark warning that the Iran war could send inflation surging again and deal a fresh blow to financial markets
Dimon also warned that the war in Iran could have ‘unpredictable’ effects on energy and commodity markets – potentially driving up prices for products like fertilizer and helium, which in turn could strain US agriculture and even the food supply
‘Given our complex global supply chains, countries are experiencing disruptions in shipbuilding, food and farming, among others, Dimon wrote.
‘The outcome of current geopolitical events may very well be the defining factor in how the future global economic order unfolds.’
Despite his warnings, Dimon pointed to ‘tailwinds’ that could support the economy, including President Donald Trump’s One Big Beautiful Bill, which JPMorgan economists say could add $300billion.
He also highlighted a surge in AI-driven investment and construction, with $725billion expected this year.
In response to the conflict in Iran and Russia’s ongoing war with Ukraine, Dimon shared that JPMorgan Chase launched the $1.5trillion 10-year Security and Resiliency Initiative plan to invest in defense technology.
That includes autonomous systems, drones, next-generation connectivity and secure communications to help ‘defend our nation’.
‘Time will tell whether the current war in Iran achieves our short-term and long-term objectives in the region and at what cost,’ he added.
The letter came a week after Dimon issued a blunt rebuke to blue state leaders – warning high taxes and declining quality of life are driving a ‘huge exodus’ of people and companies.
The JPMorgan boss said residents and businesses are increasingly leaving states such as New York and California in search of lower costs and a better life.
‘It’s also individual taxes, state taxes, corporate taxes, and it drives people out,’ Dimon said. ‘There’s a huge exodus taking place.’
‘All you have to do is look at California versus Nevada’ and ‘New York versus Florida.’
Dimon warned that policymakers pushing higher taxes on the wealthy, as is happening in Washington state, risk accelerating the problem.
‘And very often people think they’re being moral by doing that, but they’re not. What they’re doing is they’re hurting your own city,’ he said in an interview on Fox & Friends. ‘People vote with their feet.’
If higher taxpayers leave, the income of a state or city falls.
The comments come as a growing number of major firms shift operations away from traditional blue-state hubs.
On March 30, it emerged that private capital giant Apollo Global is weighing plans to establish a second US headquarters in the South, with most future hiring expected to take place outside New York.
The move would place Apollo among a wave of financial heavyweights drifting away from New York.
Florida has already attracted firms such as Citadel and Elliott Management, while banks including Goldman Sachs and JPMorgan are expanding their presence in Texas.
Meanwhile, Yamaha Motor is relocating its longtime headquarters from Cypress, California, to Kennesaw, Georgia, after nearly five decades.
Oil giant Exxon Mobil is moving its corporate registration from New Jersey to Texas, aligning its legal home with its existing headquarters in Spring, Texas.
