A top J.P. Morgan strategist tackles some of the biggest myths about the war in Iran

Conflict in Iran is driving higher global energy costs, which will transmit blowback to the U.S. economy despite the U.S. being a net exporter of certain fuels. Higher fuel prices are likely to add upward pressure to inflation and input costs, reduce real consumer spending, and pose a modest drag on growth, warranting closer monitoring by policymakers and portfolio managers.

Analysis

Conflict in Iran is driving higher global energy costs, which will transmit blowback to the U.S. economy despite the U.S. being a net exporter of certain fuels. Higher fuel prices are likely to add upward pressure to inflation and input costs, reduce real consumer spending, and pose a modest drag on growth, warranting closer monitoring by policymakers and portfolio managers.