Citi and ANZ raise Brent crude forecasts, citing Middle East supply disruptions and Strait of Hormuz issues
Citi increased its third-quarter 2026 Brent forecast to $86 per barrel, describing the current situation, including a U.S. blockade of Iran and reduced oil flows through the Strait of Hormuz, as unsustainable. Citi expects renewed dealmaking to allow the Strait of Hormuz to reopen during the fourth quarter, which it estimates would result in an oil-market surplus of 3-4 million barrels per day. ANZ separately raised its short-term Brent crude forecast to $95 per barrel, estimating the conflict will remove 2.3-2.4 billion barrels of Persian Gulf oil supply during 2026.
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