Dimon: Global Economy 'Far Less Reliant' On Energy Than In The Past

• Oil prices spiked to $115 per barrel (U.S. crude) and $119 (Brent) as Iran blocks ships through the Strait of Hormuz, which handles 25% of global seaborne oil trade
• JPMorgan stock is down about 3% year-to-date after gaining 35% in 2025; Goldman Sachs raised its price target to $365 ahead of April 14 earnings
• Dimon emphasized geopolitics as a preeminent risk to the global economy, noting war creates uncertainty and impacts countries not directly involved in conflict

Summary: Dimon on Energy Reliance and Geopolitical Risks

JPMorgan Chase CEO Jamie Dimon, in his annual shareholder letter, highlighted geopolitical risks as a primary threat to the global economy while noting the world is better positioned to handle energy shocks than in previous decades.

Key Points on Energy Markets

Dimon stated the global economy is "far less reliant on energy" compared to the past, with energy consumption relative to global GDP now only 40% of levels from 45 years ago (early 1980s). The U.S. has transformed from a major net importer to a major exporter of energy, strengthening its position during supply disruptions.

The current crisis stems from Iran's war, which began February 28. Iran has blocked ships linked to the U.S., Israel, and allies from passing through the Strait of Hormuz, which handles approximately 25% of global seaborne oil trade. The blockade has caused U.S. crude oil prices to surge to $115 per barrel, with Brent crude briefly exceeding $119. Prices were trading around $110 on Monday.

Market Impact

The supply squeeze affects petroleum-based products including plastics, asphalt, and synthetic fabrics, plus critical materials like fertilizer, aluminum, and helium. Insurance unavailability for vessels has made transit too risky for most shipping companies.

Stock Performance

JPMorgan stock is down 3% year-to-date after gaining 35% in 2025. Goldman Sachs raised its JPM price target to $365 from $352 ahead of April 14 earnings. Analysts expect JPMorgan to report 6.7% EPS growth in Q1.

Goldman Sachs stock is also down 3% this year, with Jefferies lowering its price target to $1,049 from $1,125 while maintaining a buy rating. First-quarter earnings are expected at $16.37 per share (up 16% year-over-year).