US Energy Information Administration Raises Oil Price Forecasts Due to Iran War
Contraction in global energy markets and shipment risks have led to the updating of price projections by international institutions.
The U.S. Energy Information Administration (EIA) announced in its Short-Term Energy Outlook report released on Tuesday that it has revised its oil price expectations upward for this year and next year due to the ongoing Iran war and declining global inventories.
Increase in Brent Crude Price Expectations
The EIA expects the average barrel price of Brent crude oil throughout 2026 to hover around 98 dollars. This announced figure points to an 8 percent increase compared to last month's forecast.
According to the data shared by the institution, the barrel price of Brent crude is projected to average 105 dollars in the fourth quarter of the year.
Impacts of the War on Energy Supply
Since the beginning of the ongoing war in Iran, oil and fuel prices have seen significant increases in international markets.
Shipment disruptions in the Strait of Hormuz and attacks on Saudi Arabia's East-West Pipeline continue to threaten global energy flows.
Price Projection for Next Year
In its forecasts for 2027, the EIA expects global inventories to recover and the situation on transit routes to improve.
In line with these developments, it is estimated that the barrel price of Brent crude oil will decline to an average of 84 dollars in 2027.