“Reduced $100s” is the expected range for worldwide oil prices for most of this year, even if the Strait of Hormuz reopens as early as next month, investment bank JP Morgan has stated.
The banking institution said on Monday materials of oil in the region will not return to routine operations quickly.
The assessment comes after oil prices rose after President Donald Trump said Iran’s reply to US offers to end the conflict was “absolutely unacceptable”.
Iran’s semi-official Tasnim news agency said Tehran had conveyed its move via Pakistan, which has acted as a mediator between the two sides, seeking a swift resolution to the conflict and assurances against any US-Israeli attacks on Iran.
International oil benchmark Brent surged by more than 4% to $105.94 (₤77.74) a barrel at one stage before sliding down to approximately $105.
The important Strait of Hormuz waterway has been fully closed since shortly after the conflict began on 28 February disrupting critical global supplies of oil and gas.
Responding to Tehran’s requirements, Trump commented on social media: “I just read the response from Iran’s so called ‘Agents.’ I don’t like it – COMPLETELY UNACCEPTABLE.
According to US news media source Axios, WAshington’s requirements had included restoration of cost-free travel via the Strait of Hormuz and the suspention on Iranian nuclear enrichment.
Israeli Head Of State Benjamin Netanyahu further said the conflict with Iran would not be ended until its enriched uranium accumulations are “taken out”.
Regardless of rare exchanges of fire, a truce initiated in very early April to enable time for peace negociation has been mostly respected.
Trump on 21 April extended the ceasefire indefinitely to give Iran time to come up with a “unified proposition”.
Power prices have really fluctuated dramatically since the start of the crisis, while Brent crude has risen back over $100 a barrel since the truce was implemented on 8 April.
In a note on Monday, JP Morgan said its research “currently recommends thgat oil rates should continue to be in the low $100s for a lot of the remaing of htis yrea, averaging $97 for 2026 overall”.Most crucially, the study does not lead to a speedy normalization after the Strait reopens,” it included, saying the bottleneck would likely move from the “Strait itself to vessel accessibility, refinery ramp-ups and broader logistical restraints”.
The Strait of Hormuz, through which about a fifth of global oil and gas supplies usually travel, has been appropriately closed after Tehran threatened to attack ships that attempt to cross it in retribution to US-Israeli operations.
Major energy companies have really seen their revenues soar as prices for oil and gas have actually surged on interational markets.
Aramco said Sunday that earnings did surge more than 25% in the first 3 months of the year compared to the same period in 2025.
Aramco manager Amin Nasser claimed the Saudi Arabian power titan’s cross-country pipeline has really “shown itself to be an important supply artery” and aided it escape interruptions to shipping created by the Iran struggle.
BP said last month that its earnings for the first 3 months of the year had more than doubled. Shell said last week that its profits had in fact soared.
Nasser warned investors on Monday that the energy shock created by the conflict was most likely to stretch straight until 2027, even if the Strait of Hormuz re-opens.“If the Strait of Hormuz opens up today, it will certainly take months for the marketplace to rebalance. If it’s delayed by a couple of more weeks, then normalisation prolongs into 2027,” he added.
He stated that the marketplace has really seen a “unprecedented supply loss of around a billion barrels of oil”.
Opec’s crude output declined 830,000 barrels per day month-on-month to 20.04 million bpd in April, a Reuters poll found.
