JP Morgan believes that a Strait of Hormuz closure would likely trigger a sustained oil price shock that will reverberate through global macro developments, the bank said in a note.
It said that in the most extreme case of a broader regional conflagration that includes the closure of Hormuz, it estimates oil prices could surge to $120-130 per barrel.
(Reporting by Anjana Anil in Bengaluru, editing by Deepa Babington)