Brent crude prices hover near $90 per barrel, as fallout from Iran war hits travel firm Tui’s profits
Oxford Economics has hiked its oil price forecasts amid renewed hostilities between the US and Iran.
It now expects average oil prices to sit around $85 per barrel over the remainder of this year before gradually falling back to about $65 per barrel by the end of 2027.
That is roughly 0.5 percentage points lower than in February.
Ben May, director of global macro research at Oxford Economics, and author of the report, said:
The renewed hostilities between the US and Iran suggest that a long-term reduction in shipping through the strait of Hormuz is now the most likely scenario.
It isn’t in the interests of the US or Iran to keep the Strait of Hormuz permanently closed.
But mutual deep distrust and an unwillingness by either party to make large concessions mean a lasting deal is unlikely to be reached and maintained anytime soon.
