As the Iran war and the closure of the Strait of Hormuz continue to hit financial markets hard, hopes for 2026 are also diminishing. Two major American banks have made significant changes to their expectations for this year.

The economic crisis, which began with tariff disputes last year and continued with the Iran war this year, has also started to reflect in bank reports. America’s two giants, Wells Fargo and Citi, have significantly revised their expectations for this year.

Wells Fargo previously expected two Fed rate cuts in 2026, but the bank has now eliminated this expectation! In its latest report, it states, “Wells Fargo expects the Fed to keep interest rates steady in 2026.”
Citi postponed, but…
Another giant has delayed its expectations for June to September. According to Citi’s latest report, they anticipate much more rate cuts than Wells Fargo. The report indicates there will be no rate cuts until September, but in September, October, and December, there will be consecutive 25 basis point cuts. Therefore, Citi expects a total of 75 basis points in cuts for 2026.

Jamie Dimon also said, “It could stay high”
JPMorgan CEO Jamie Dimon, in a letter to shareholders today, highlighted the Iran crisis and specifically mentioned the difficulties faced by the private credit sector. Dimon stated, “Interest rates could remain much higher than we expected this year.”

As is well known, the private credit sector has been experiencing various difficulties recently. According to banks, fund providers like Blackstone, Blue Owl, and Apollo, which offer much easier credit, have started to ask for their money back. However, such funds, which provide long-term loans, also prevent the money from being liquid. Therefore, these companies’ repayments are seen as impossible in the short term.

These developments have also caused significant declines in the stocks of these giants, including BlackRock.

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