Barclays forecasts Brent crude could test $120 per barrel
Barclays says Brent crude could test $120 as Middle East tensions persist. The closure of the Strait of Hormuz has stranded 85 million barrels of crude oil.
Barclays PLC has warned that Brent Crude Oil prices could test $120 per barrel if the current conflict in the Middle East persists for another two weeks. Analysts at the bank noted that while such a projection might seem high relative to earlier market pessimism, the underlying fundamentals are currently stronger and the risks more substantial than those observed during the conflict between Russia and Ukraine.
The surge in energy prices follows a significant escalation in the conflict involving the United States and Israel against Iran, which has effectively closed the Strait of Hormuz. This vital waterway facilitates the transit of approximately 20% of global oil and liquefied natural gas. Shipping has been severely disrupted following threats from Iran to target vessels passing through the region.
