JPMorgan Cuts S&P 500 Target to 7,200 Amid Oil Surge

JPMorgan Chase & Co. strategists lowered their year-end target for the S&P 500 index to 7,200 points from 7,500 on Friday, citing heightened uncertainty from the escalating conflict in the Middle East that has driven oil prices above $110 per barrel and disrupted global energy supplies.

The revision, detailed in a client note led by strategist Fabio Bassi, reflects concerns over a potential supply shock from interruptions in the Strait of Hormuz, a critical chokepoint for oil shipments. The conflict, which intensified three weeks ago with initial strikes by the United States and Israel on Iranian targets, has led to Iranian retaliatory actions against Gulf energy infrastructure. Brent crude has surged more than 40 percent since then, reaching levels not seen in years and pushing supply shut-ins to a record 8 million barrels per day. Analysts warn that disruptions could climb to 12 million barrels per day, equivalent to about 11 percent of global production.

Equity markets have shown signs of strain amid the turmoil. The S&P 500 dropped 1.5 percent on Friday to close at 6,506.48, marking its lowest level in six months and extending a four-week losing streak, the longest in over a...