Citi Jumps Q3 Brent Forecast Amid Hormuz Closure
Citi, a major financial institution, has revised its Brent price forecast for Q3 2026 to $86 per barrel from an initial estimate of $80. This upward revision is attributed to the prolonged closure of the Strait of Hormuz.
The bank cited pressure on Iran to reopen the strait due to economic hardship caused by a sharp currency decline and lost oil revenue in recent weeks.
Citi anticipates a near-term escalation in the Middle East that could lead to renewed deal-making efforts or other developments allowing the Strait of Hormuz to reopen in Q4 2026. The bank maintained its forecasts for Q4 2026 and 2027 at $70 per barrel and $65 per barrel, respectively.
Citi also adjusted its natural gas price forecast lower to $2.9 per million British thermal units due to expected production growth.