Can you run 31 inch tires on a 2.5 with 3.73 gears?

You can run 35s if you want.

However, it's going to suck big time. Even with 31s on that 4 cylinder, you'll really want to re-gear, as 3.73 is a horrible gear ratio for the 4 cylinder even in stock form.
 
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I don't own one, but I drove a 4 banger manual tranny TJ once. It felt pretty peppy on surface streets on 33's, but it also had 5.13 gears. It also had a rear spool. First time I experienced that too. That thing would easily do the 3 wheel motion on sharp left turns.
 
Can you run 31 inch tires on a 98 Jeep Wrangler 2.5l 4 cylinder with 3.73 gear ratio?
Sure. Can you enjoy driving it? That's up to you and your expectations.

31" tires are livable with a manual and 4.10's. Barely. If you go off road, you'll spend a lot more time in low range than you want to. On the street or on gravel you'll spend a lot of time in third gear. Hit a hill - third. Pass - third gear.

With the 2.5 and AX5, 32" tires and 5.13 gears are about perfect for street and trail use. Use the Grim Jeeper's calculator to run the numbers. Get as close as you can to the above setup for the greatest satisfaction. Overgear rather than undergear if you have a choice.
 
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