Brent: Higher inflation risks support prices – OCBC
OCBC’s Sim Moh Siong and Christopher Wong note that renewed US-Iran tensions have lifted Oil prices and revived global inflation concerns, with markets now fully pricing a Federal Reserve rate hike by October.
OCBC analysts Sim Moh Siong and Christopher Wong highlight that heightened US-Iran tensions have sent oil prices soaring and reignited worries about global inflation. The market now anticipates a Federal Reserve rate increase by October. They have raised their end-2026 Brent forecast from USD75/bbl to USD80/bbl, taking into account a forecasted slowdown in Middle East oil supply due to stalled negotiations on reopening the Strait of Hormuz.
The recent US strikes on Iran in retaliation for attempted attacks on shipping have contributed to the surge in energy prices. This sharp rise follows a brief period of relative calm that had previously allowed Persian Gulf producers to transport crude through the Strait of Hormuz via a covert shuttle system.
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