Citigroup stated in its latest commodity outlook that its core scenario is the reopening of the Strait of Hormuz to shipping in Q4 2026. The bank believes that if the strait reopens, a decline in oil prices could benefit gold by easing inflationary pressures, providing room for the Federal Reserve to pivot to an accommodative stance, and driving down the dollar and real interest rates. Citi maintained its bullish outlook on precious metals, raising its 0-3 month target price for gold to $4,800/oz and keeping its 6-12 month target price unchanged at $5,000/oz, both above the current spot price of approximately $4,500/oz. The bank also raised its Q3 2026 Brent crude oil forecast to $86/barrel but kept its Q4 forecast at $70/barrel and its 2027 forecast at $65/barrel unchanged.