Oxford Economics Lifts Oil Outlook to $85 as US-Iran Hostilities Threaten Hormuz Traffic
Updated
Updated · The Guardian · Aug 12
Oxford Economics Lifts Oil Outlook to $85 as US-Iran Hostilities Threaten Hormuz Traffic
3 articles · Updated · The Guardian · Aug 12
Summary
$85 a barrel is now Oxford Economics' average oil-price forecast for the rest of 2026, with prices seen easing to about $65 by end-2027.
Renewed US-Iran hostilities drove the upgrade, while the consultancy said deep mutual distrust and limited willingness to compromise make a durable deal unlikely soon.
The firm expects the Strait of Hormuz to avoid a permanent closure, but forecasts shipping flows will keep fluctuating with tensions and stay below pre-conflict norms until at least 2028.
That weaker energy backdrop leaves global growth roughly 0.5 percentage points lower than Oxford Economics projected in February.