The U.S. Energy Information Administration (EIA) on Tuesday released its Short-Term Energy Outlook report, raising its forecast for the average price of global benchmark Brent crude in 2026 to approximately $98 per barrel, an 8% increase from its previous projection. Concurrently, the EIA revised its average price forecast for the fourth quarter of 2026 up by 15% to about $105 per barrel. The EIA attributed this upward revision primarily to an accelerated decline in global inventories, persistent tightness in the diesel market, and disruptions to oil flows through the Strait of Hormuz due to the Iran war. The EIA anticipates that while oil prices will retreat to $84 per barrel in 2027, this figure will still remain above its previous baseline.