The Middle East situation is more volatile now than it was before the war began, Jefferies said in a report.

According to Jin10, Jefferies Group global economist Mohit Kumar said the firm remains optimistic in the short term and sees the possibility of a solution that would allow oil to flow and limit further increases in oil prices.

Kumar said the upcoming U.S. midterm elections are putting pressure on U.S. President Donald Trump. He said Trump is constrained by the midterm elections and the possibility of losing the Senate and the House of Representatives.

Kumar added that ahead of the midterm elections, Trump may be more willing to accept some form of agreement to keep oil prices under control.