Citi Says Oil Prices Could Surge to $130 A Barrel if Strait of Hormuz Remains Closed

Source: International Business Times

Citi analysts warned of how quickly the oil market could tighten further if the Strait of Hormuz does not fully reopen soon, noting that crude could climb as high as $130 a barrel by the end of June under its most severe scenario. Speaking to CNBC, the analysts laid out three possible outcomes if the Strait remains closed due to the United States' war in Iran. In its best-case scenario, a ceasefire extension would be signed this week and flows through Hormuz would gradually recover through May, reaching pre-disruption levels by the end of June.