Citi Boosts Brent Crude Forecast to $80 Amid US-Iran Conflict
Citi has raised its third-quarter 2026 Brent crude forecast to $80 per barrel, a $5 increase from its previous estimate of $75. The revised prediction is driven by the ongoing US-Iran conflict, which has lasted longer than expected.
The war in the Strait of Hormuz has disrupted oil flows, causing prices to fluctuate. Initially, Citi had forecasted Brent crude at $110 per barrel during peak tensions around the Hormuz blockade. However, a temporary understanding between the US and Iran in June brought forecasts down, with occasional price spikes above $90.
Citi's fourth-quarter 2026 Brent forecast remains unchanged at $70 per barrel, while its average projection for 2027 sits at $65. The bank's analysts are cautious about the conflict's timeline, warning that a prolonged disruption could send prices higher than expected.