Economist and macro strategist David Woo points out that despite Middle East oil flows having recovered to above pre-war levels, oil prices remain elevated due to soaring transportation costs and geopolitical threats from Iran. He believes that refiners are paying not only for crude oil but also approximately $34-37 per barrel in shipping, insurance, and financing costs. Iran does not need to blockade the Strait of Hormuz; merely maintaining a threatening posture can keep oil transportation costs high in the long term, thereby indirectly supporting oil prices. Woo maintains a bullish stance on oil prices, projecting a target range for Brent crude between $110 and $120 per barrel.