Analysts Revise Up Oil Price Forecasts Amid Ongoing Energy Disruptions

Oil price forecasts have been revised upward for the third time since the Iran war began at the end of February, according to analysts surveyed by Reuters.

The latest projections show Brent crude averaging $90.44 per barrel in 2026, up from last month's estimate of $86.38 and a significant increase from the February estimates of $63.85.

U.S. crude is also expected to rise, with an average price of $84.63 per barrel in 2026, compared to $80.07 projected in April.

The analysts cite a slow recovery of energy flows to pre-conflict levels, which they believe will take months. The closure of the Strait of Hormuz has caused significant disruption to energy supplies, resulting in prices hitting four-year highs of over $126.41 for Brent and $119.80 for WTI since the war began.

Despite these increases, analysts say that there is a low probability of prices reaching new records this year. Even though they forecast prices to continue increasing until July, this increase will be marginal from current high levels.