Middle East Tensions Spark Oil Price Surge Prediction
Oil prices could surge to over $100 per barrel by the end of the year due to escalating tensions in the Middle East, according to a new forecast from consulting firm Rapidan Energy Group.
The company has raised its forecast for Brent crude oil prices in the fourth quarter from $85 to nearly $100 per barrel, citing the risk of prolonged shipping disruptions in the Strait of Hormuz following the collapse of the ceasefire between the US and Iran.
Analysts believe that the escalation of the conflict could keep oil prices high until the end of the year, with the global market remaining in deficit for at least another year.
Rapidan also notes that shipping through the Strait of Hormuz will recover much more slowly than previously expected, with traffic volumes reaching only about 35% of pre-war levels by October and approximately 65% by 2027.