Citi and ANZ Boost Brent Crude Forecasts Amid Middle East Supply Disruptions

Citi and ANZ have revised their forecasts for Brent crude prices as disruptions to Middle East supply continue.

Citi raised its third-quarter 2026 forecast to $86 per barrel, citing unsustainable current conditions, including a US blockade of Iran and reduced flows through the Strait of Hormuz.

The bank expects renewed dealmaking or other developments to allow the waterway to reopen in the fourth quarter.

This would leave the oil market with an estimated surplus of 3 million to 4 million barrels per day, compared to about 2 million previously.

ANZ also increased its short-term Brent crude forecast to $95 per barrel, stating that the market is entering a delicate adaptation phase as inventories decline.