JP Morgan chief Jamie Dimon warns of 'dangerous time' as Israel-Gaza war escalates

Concern mounts that conflict in Middle East could have a far-reaching impact on markets, trade and geopolitics

JP Morgan chief executive Jamie Dimon said the Israeli-Gaza war could have 'ripple effects that extend far beyond the region'. Bloomberg
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JP Morgan chief executive Jamie Dimon has said the Israel-Gaza war could have serious geopolitical consequences for the global economy.

Mr Dimon's warning came in the bank's third-quarter earnings on Friday. JP Morgan reported a 35 per cent jump in net profit to $13.15 billion last quarter, from $9.74 billion in the same period a year ago.

However, he noted a long list of risks that the bank and economy were facing. Among them are the continued conflict in Ukraine and the escalating Israel-Gaza war.

“The war in Ukraine compounded by last week’s attacks on Israel, may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships,” Mr Dimon said in the earnings statement.

“This may be the most dangerous time the world has seen in decades. While we hope for the best, we prepare the firm for a broad range of outcomes so we can consistently deliver for clients, no matter the environment.”

Mr Dimon said the economy faced additional headwinds, including high US government debt, elevated inflation levels and a tight labour market.

The war has done little to move global markets so far, with Mr Dimon saying the economic impact would play a secondary role to that of geopolitics.

In an internal memo reported by Reuters, Mr Dimon warned that the war could have “ripple effects that extend far beyond the region”, leading to the possibility of a rise in anti-Semitism and Islamophobia around the world.

The earnings report and Mr Dimon's comments came as Israel gave Palestinians an order to leave northern Gaza ahead of a potential ground offensive.

More than 1,500 people in Gaza have been killed since Israel began air strikes, while about 1,300 Israelis were killed during the Hamas assault last week. Most of the Palestinian and Israeli fatalities were civilians.

Updated: October 13, 2023, 3:21 PM