Jamie Dimon annual letter warns Iran war could trap Fed in stagflation

JPMorgan Chase CEO Jamie Dimon released his 2026 annual shareholder letter warning that the Iran war represents the skunk at the party that could push inflation higher rather than lower, trapping the Federal Reserve in a higher-for-longer rate environment. Dimon outlined a tipping-point scenario where energy shocks from the Strait of Hormuz closure combine with deficit spending to produce stagflation. He flagged eight compounding risks including souring US-China relations, trade uncertainty, and stress in private credit markets.