JPMorgan Analyst Says Investors Should Buy The Dip On Weakness Induced By US-Israel-Iran War: Report

• JPMorgan’s Mislav Matejka also added that any increase in crude oil prices will likely fade because of excess supply.
• However, ING Think stated in a note on Sunday that if the U.S.-Israel-Iran war leads to significant and extended oil supply disruptions, it could push crude oil prices to $100 per barrel and even $140 per barrel, in the worst-case scenario.
• Analysts at UBS stated in a note on Monday that they expect the rise in crude oil prices to reverse at least partially in their base case scenario.

JPMorgan analyst Mislav Matejka reportedly recommended that investors buy the dip amid weakness driven by the ongoing U.S.-Israel-Iran war.

According to an Investing.com report citing a note from the firm on Monday, Matejka stated that the equity fundamentals are positive, while adding that the current geopolitical escalation should be viewed as an opportunity to invest.

“Dramatic weekend events will naturally lead to risk-off behaviour… but if one is to have a time horizon longer than next days/weeks… one should be using the weakness to add into,” Matejka added in the note, according to the report.

Meanwhile, U.S. equities declined in Monday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.68%; the Invesco QQQ Trust ETF (QQQ) fell 0.55%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.83%.

Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

Middle East Escalation Unlikely To Stick For Long, Says Matejka

Matejka added that the escalation of tensions in the Middle East is “unlikely to stick for long” due to political calendars, with the U.S. midterm elections slated for November 2026.

He also added that any increase in crude oil prices will likely fade because of excess supply. This comes at a time when crude oil prices are soaring, with the U.S. West Texas Intermediate (WTI) crude futures maturing in April up nearly 6.8% to $71.57 per barrel. Brent crude futures maturing in May gained 8% to $78.7 per barrel.

Analysts at ING Think stated in a note on Sunday that if the U.S.-Israel-Iran war leads to significant and extended oil supply disruptions, it could push crude oil prices to $100 per barrel and even $140 per barrel, in the worst-case scenario.

UBS Expects Oil Price Rise To Reverse At Least Partially

Analysts at UBS stated in a note on Monday that they expect the rise in crude oil prices to reverse at least partially in their base case scenario. They said this would likely occur once it becomes clear that supply disruptions caused by the Iran conflict are temporary, critical oil infrastructure remains intact, and the need for continued military action fades.

“In this scenario, markets may be volatile over the coming weeks but would likely thereafter start to refocus on positive global economic fundamentals. This would be in line with the impact of most geopolitical shocks in recent history,” the firm stated.

UBS added that its base-case scenario is predicated in part on the relative military success of the US-Israeli operation so far and on the likely rapid degradation of Iranian military capacity.

Also See: Qatar's State-Owned Energy Firm Halts LNG Production Following Iran Drone Strikes: Doha Calls It ‘Dangerous Escalation’

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