  We define and compute a cohomology of the space of Jacobi forms based on
precise analogues of Zhu reduction formulas. A counterpart of the Bott-Segal
theorem for the reduction cohomology of Jacobi forms on the torus is proven. It
is shown that the reduction cohomology for Jacobi forms is given by the
cohomology of $n$-point connections over a deformed vertex operator algebra
bundle defined on the torus. The reduction cohomology for Jacobi forms for a
vertex operator algebra is determined in terms of the space of analytical
continuations of solutions to Knizhnik-Zamolodchikov equations.
