🔺Oil nears $97; Hormuz outlook remains unclear until 2027

🔺Oil nears $97; Hormuz outlook remains unclear until 2027

▪ Oil prices continued rising on Monday, after reciprocal strikes by the United States and the Islamic Republic against vessels in the Strait of Hormuz heightened concerns about a prolonged disruption in Middle East supply.

▪ Brent crude oil futures rose by 52 cents to $96.80 per barrel. U.S. West Texas Intermediate (WTI) crude oil also rose by 66 cents to $92.14.

▪ Brent rose 7.8% last week, and WTI nearly 10%.

▪ Based on an analysis by ANZ Bank, the most likely scenario is a prolonged standoff combined with a measured military response by both sides. Accordingly, a return to pre-war traffic levels is not expected until late in the first quarter or early in the second quarter of 2027.