Bank of America lowers Brent forecast ahead of expected reopening of Hormuz

The full resumption of shipping through the Strait of Hormuz could lead to the average price of Brent crude falling to $82 per barrel this year, according to Bank of America.

Report informs via Al Jazeera that the bank had previously forecast an average Brent price of $93 per barrel. In its revised outlook, it said that if the situation normalizes, Brent will likely trade in the $70–80 per barrel range in the second half of 2026.

Bank of America attributed the revision to the prospect of increased global oil supply should the Strait of Hormuz resume full operations.

The report notes that oil prices on Thursday fell to their lowest level since trading resumed following the outbreak of the conflict involving Iran. Market sentiment was weighed down by expectations of an agreement between the United States and Iran that would end the conflict, reopen the Strait of Hormuz, and ease sanctions on Tehran.