Two problems related to engine oil leaking have been reported for the 1997 Jeep Wrangler. The most recently reported issues are listed below.
Noticed oil leaking. Had the vehicle serviced at the dealer who put a new seal on. After a second seal was put on, took it to the dealer to have the torque turning checked on the rear pinion gear. Was told that the bearings were all bad and needed to be replaced. Also, they had to rebuilt the rear end.
While driving lost oil pressure and vehicle started smoking. Vehicle caught on fire, and the consumer extinguished the fire with a fire extinguisher. The manufacturer has been contacted. Oil was squirting out of the tope of the oil pressure sensor and running back on the catalytic converter, sensor failure and leakage caused fire.