Citi has raised its third-quarter Brent crude forecast to $80 per barrel from $75 as the U.S.-Iran war drags on and repeated attempts at a deal fail to restore normal oil flows through the Strait of Hormuz.
The bank still expects the conflict to be resolved, but the five-month war has lasted longer than Citi anticipated and kept more geopolitical risk in crude prices.
Citi left its fourth-quarter Brent forecast unchanged at $70 per barrel and still sees the benchmark averaging $65 in 2027.
Brent futures were trading at $83.11 per barrel on Friday afternoon, up $0.62, while West Texas Intermediate gained $0.51 to $77.80.
Concerns over U.S.-Iran negotiations helped lift prices after Brent briefly fell below $80 earlier in the week on renewed hopes for a Hormuz agreement.
