Brent may average $89 in FY27 amid Iran Israel tensions
Tensions between Iran and Israel are shaking up the global oil scene, with disruptions at the Strait of Hormuz threatening a shortage of 7 million to 11 million barrels a day.
According to a fresh report from Choice Equity Broking, if these restrictions drag on past May, we could see Brent crude prices hit an average of $89 per barrel in FY27, so expect fuel costs to stay high for a while.
Rising diesel prices and Bab-el-Mandeb risk
The report also flags rising diesel prices as refineries struggle with expensive crude, meaning sectors that rely heavily on diesel might need to cut back.
On top of that, Iran's threat to close Bab-el-Mandeb could impact another major transit route, potentially affecting more than 7 million barrels a day, which might help offset some disruption but still keeps supply chains tense.