Oil Prices Rebound as Iran Imposes Conditions for Hormuz Reopening
Oil prices rebounded on Monday after last week's sharp sell-off, with Brent crude climbing about 1% to $84.46 a barrel and West Texas Intermediate rising to $78.79.
The recovery came as Iran announced a shipping arrangement with Oman, but made it clear that the Strait of Hormuz would remain closed unless Washington agrees to sweeping concessions, including sanctions relief, asset release, compensation for war damage, an end to US military threats, and removal of the naval blockade.
Citi raised its third-quarter Brent forecast to $80 a barrel from $75 on August 7, citing the prolonged supply disruption and conflict, but kept its fourth-quarter forecast at $70 and 2027 average at $65.
JPMorgan is also bearish beyond the immediate crisis, predicting that renewed oversupply will push Brent prices down to an average of $63 in 2027.