economy
Iran deal won't solve oil supply issues overnight. Barclays keeps $100 forecast
Barclays warns that immediate normalization of physical oil supply chains across the Strait of Hormuz could take weeks.
TL;DR
- A peace deal between the U.S. and Iran is anticipated to reopen the Strait of Hormuz.
- Barclays maintains its 2026 oil price forecast at $100 per barrel for Brent, citing potential lingering impacts on oil supplies.
- Restoring normal trade flows through the Strait of Hormuz could take weeks due to logistical challenges and the risk of further disruptions.
- Analysts from Citi, Goldman Sachs, and Morgan Stanley predict a quicker normalization of trade flows through the strait.
- The oil market's focus is returning to underlying weak conditions and a potential surplus by next year.