Demand destruction will outweigh a wider Mideast conflict in oil markets, JPMorgan says

• Even if the Israel-Hamas conflict expands, falling oil consumption will keep prices in check, JPMorgan said.
• Higher prices, paired with declining currencies and surging borrowing costs, have cut into oil demand.
• Analysts also noted that Israel's previous military conflicts have rarely caused lasting price turmoil.

Investors stressed that a wider Mideast conflict could catapult crude prices upwards should take note of how far global demand for oil has fallen, JPMorgan outlined in a Friday note.

Though there's room for concern that the Israel-Hamas war could expand into a broader Middle Eastern clash, it's unlikely that this would fuel a prolonged oil price spike, analysts said.