NEW YORK (AP) — JPMorgan Chase CEO Jamie Dimon warned in his annual shareholder letter that a “resilient” U.S. economy could face renewed inflation pressures if the war in Iran disrupts global energy markets.

Dimon described inflation as the potential “skunk at the party” this year, cautioning that turmoil in oil and commodity markets could ripple through the economy, affecting everything from gasoline prices to manufacturing costs. He also warned that sustained inflation could force the Federal Reserve to keep interest rates higher for longer, posing risks to the broader economy and financial system.

“Given our complex global supply chains, countries are experiencing disruptions in shipbuilding, food and farming, among others,” Dimon wrote. “The outcome of current geopolitical events may very well be the defining factor in how the future global economic order unfolds — then again, it may not.”

Dimon has long used his annual letters to weigh in on major economic and policy issues. Past letters have focused on topics such as the COVID-19 pandemic, political upheaval in the United States, the global financial crisis and trade tensions.

Despite the risks, Dimon struck a generally optimistic tone.

“Despite the unsettling landscape, the U.S. economy continues to be resilient, with consumers still earning and spending (though with some recent weakening) and businesses still healthy,” he wrote.

While acknowledging the geopolitical context of the conflict, Dimon pointed to broader risks tied to instability in the region.

“We should not turn a blind eye to the role the current regime in Iran has played in fostering terrorism and killing thousands of people, including Americans and many of its own citizens, over many years,” he wrote.