Oil could fall to $60 by year-end as Hormuz shock fades, Citi analysts say
Oil prices could fall to $60 a barrel by year-end as the risk premium tied to the Strait of Hormuz fades, according to Citi analysts. Brent crude sank 30% in the second quarter of 2026, unwinding all the gains seen during the Iran war. Easing supply fears are reshaping the market outlook.
Oil prices could ease to as low as $60 a barrel by year-end as the geopolitical risk premium around the Strait of Hormuz recedes, according to Citi analysts. As reported by the Straits Times, Brent crude fell 30% in the second quarter of 2026.
That decline means a complete unwinding of the price gains built up during the Iran war. Easing worries over global oil supply are pulling market price expectations lower.
The Strait of Hormuz is a critical waterway through which a significant share of the world's oil shipments passes. As tensions ease, fears of a supply disruption are receding. Analysts say the price path will remain tied to the supply-demand balance and regional developments. Year-end forecasts will be watched closely.
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