Citi revises Q3 Brent price outlook amid prolonged Iran conflict and supply disruptions in the Strait of Hormuz.
Citi increased its Q3 Brent crude forecast to 80 USD per barrel, citing prolonged tensions in the Strait of Hormuz and Iran’s refusal to reopen the key oil transit route. The move follows reports of Iranian missile strikes on a tanker off Oman and escalating regional blockades by Iran-backed groups.
Oil futures on Globex opened the week up 2% after a volatile weekend, with gold also rallying to a seven-week high on weaker-than-expected US jobs data. The People’s Bank of China set the yuan reference rate at 6.7884, weaker than the estimated 6.7379, as China’s stockpiles mask deeper supply concerns.
Markets reacted with mixed sentiment: Kospi and Nikkei rose, while the Kosdaq triggered a circuit breaker due to surging tech stocks. Analysts remain divided, with Goldman Sachs maintaining a bullish stock outlook but expecting oil to soften below 70 USD.