Oil prices are expected to remain elevated in the near term as traders weigh the risk of supply disruptions through the Strait of Hormuz, a chokepoint for more than 20 per cent of global oil supply, amid the widening Middle East conflict.
Israeli and US strikes on Iranian targets have led to attacks across the gulf, and Iranian state media reported an Islamic Revolutionary Guards Corps official as saying the waterway had been shut, warning that any vessel attempting to transit could come under attack.
J.P. Morgan estimates that crude oil supply from Iraq and Kuwait will be shut down within days if the Strait of Hormuz remains closed, projecting supply losses of up to 4.7 million barrels per day.
ANZ raised its average Brent crude forecast to $90 a barrel and LNG forecast to $17/mmBtu for the first quarter of 2026.
Goldman Sachs raised its Q2 2026 average price forecast for Brent crude oil by $10 to $76 per barrel and by $9 for WTI to $71. It also revised its Q4 2026 forecasts for Brent and WTI to $66 and $62, respectively.
Both Brent and US West Texas Intermediate crude rose by around five per cent or more in the past two sessions.
(Reporting by Pablo Sinha in Bengaluru; Editing by Rashmi Aich)
