Bank of America said that a full reopening of the Strait of Hormuz could see Brent crude prices average $82 a barrel this year, compared with its previous forecast of $93 a barrel.
The note dated Wednesday added that Brent would likely trade in the $70 to $80 range for most of the second half of this year.
On Thursday, oil prices fell to their lowest since the first trading day of the Iran war, as a US-Iran interim deal to end the conflict, reopen the Strait of Hormuz and ease sanctions on Tehran boosted the global supply outlook.
The 14-point memorandum sets out a 60-day negotiation period during which Iran would allow vessels to pass through the Strait of Hormuz without fees. The accord envisages restoring traffic through the key oil and gas chokepoint to full capacity within 30 days.
BofA forecast a net oil deficit of 2.6 million barrels per day in 2026, compared with a pre-war expectation of a two million bpd surplus.
It expects Brent prices to average $70 a barrel in 2027 despite a likely surplus.
Earlier this week, Goldman Sachs, Morgan Stanley and Citi also lowered their oil price forecasts.
(Reporting by Ashitha Shivaprasad in Bengaluru. Editing by Mark Potter)