Oil prices face volatility as Bank of America warns of $150 surge

Oil prices have experienced a temporary decline, with Brent crude trading slightly above $100 and WTI falling below $94. This recent dip follows news from Saudi Arabia regarding the partial restoration of capacity in the East-West pipeline and increased shipments through Oman to Asian refineries.

However, Bank of America has significantly raised its long-term forecasts, predicting Brent could reach $95 by the end of 2026. Analysts warn that if conflicts involving Iran escalate and lead to further damage to energy infrastructure, prices could surge beyond $150 per barrel.

Geopolitical tensions continue to impact supply, particularly in the Strait of Hormuz, which handles approximately one-third of global oil trade. While the initial daily market loss of 14 million barrels following US and Israeli strikes on Iran has decreased to a gap of 4–8 million barrels, the disruption to infrastructure and ongoing regional instability remain significant risks to market normalization.