Oil prices are in danger of rising to $175 per barrel in the years ahead, the chairman and chief executive of JP Morgan predicted, with a potential recession on the way in the US.
He upgraded his warning from previous predictions of a “storm”, saying that unprecedented risks are combining with unpredictable consequences.
Speaking at a conference hosted by Alliance Bernstein, Mr Dimon said: “I said they’re storm clouds, they’re big storm clouds here. It’s a hurricane. Right now, it’s kind of sunny, things are doing fine. Everyone thinks the Fed can handle this.
“That hurricane is right out there down the road coming our way. We just don’t know if it’s a minor one or Superstorm Sandy. And you got to brace yourself.”
The scale of the unpredictability of the war and the wider economy mean the bank is battening down the hatches.
Mr Dimon, the longest serving bank chief on Wall Street and the only one in post during the financial crisis, said: “JP Morgan is bracing ourselves, we are going to be very conservative on our balance sheet.”
