JPM: SHORT THE STOCK MARKET UNTIL THE STRAIT OF HORMUZ REOPENS

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JP Morgan analysts are telling investors to short the stock market until the Strait of Hormuz reopens. The Strait is effectively closed. Oil flows are blocked. One thousand ships including 200 oil tankers are stranded. Normally sixty pass per day. Now almost none. The global energy system is frozen.

President Trump warned on Truth Social that the United States is the largest oil producer in the world and profits when oil prices rise. But he stressed his priority is stopping Iran from acquiring nuclear weapons and destroying the Middle East and the world. He will not allow that to happen. The administration is reportedly preparing to suspend the Jones Act to tame oil prices. That move signals the war will not end soon. Iran has officially rejected all ceasefire demands from the United States and Israel.

The economy was already fragile before the war. High tariffs, rising stress in credit, the weakest consumption since Covid with only +1.8 percent growth this quarter according to the Atlanta Fed, weakest wage growth since Covid, and a housing recession. Now add higher oil, higher interest rates, and a higher dollar. Markets are under pressure. The Fed faces enormous pressure to hike rates.