Wells Fargo CEO Charles Scharf said the U.S. economy remains "extremely strong" despite the ongoing Iran war, though he warned that prolonged conflict could eventually shake that foundation.

Scharf's Economic Assessment

In a Fox Business interview, Scharf pointed to consumer spending, employment and wage growth as signs of resilience. Even with oil prices climbing, households have not pulled back.

"When we look at consumers, they are still spending even with increases in oil prices – they are spending 20%, 30% more on oil," Scharf said. "But they have not stopped spending on everything else."

Delinquencies remain low, businesses are healthy and wages continue to rise, he added. Scharf described the picture across Wells Fargo's broad customer base as "really good shape."

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War Risks and Market Fragility

Still, Scharf drew a sharp line between economic data and market sentiment. He noted a growing "fragility or nervousness" among investors that has yet to show up in hard numbers.

The remarks reflect a broader tension on Wall Street, where solid fundamentals are running up against geopolitical uncertainty that could shift the outlook quickly.

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