The Crisis in the Strait of Hormuz Is Difficult to Resolve, Citi Expects Brent Oil Prices to Remain at $120 per Barrel in the Short Term

Citi forecasts that prolonged US-Iran negotiations will lead to a continued Strait of Hormuz blockade, potentially driving Brent crude prices to $120 per barrel. Current oil prices are already above $100 per barrel, significantly higher than pre-conflict levels. Despite reduced Chinese oil imports, the global oil market underestimates the duration and risks of a blockade, leading to potential price increases.