Home›Commodities›Energy›Oil prices rise on renewed US-Iran tensions

Oil prices rise on renewed US-Iran tensions

Oxford Economics expects average oil to average about $85 per barrel this year before easing toward about $65 by end-2027.

Reported · Written up by our desk · Energy

Oil prices climbed as renewed hostilities between the US and Iran raised concerns about shipping disruptions tied to the Strait of Hormuz, where traffic could remain below pre-conflict norms.

Oxford Economics raised its oil price outlook, saying average prices should sit around $85 per barrel for the remainder of this year, before gradually falling to about $65 per barrel by the end of 2027, roughly 0.5 percentage points lower than in February.

The research firm said a long-term reduction in shipping through the strait is the most likely scenario, noting it is not in the interests of either side to keep the strait permanently closed but that a lasting deal is unlikely to be reached soon.

The report also pointed to business spillovers, with the Guardian noting that Tui shares fell as the Iran conflict weighs on profits via higher fuel costs.

More like this

Sources