Wall Street Banks Cut Oil Forecasts on Hopes for US-Iran Deal
Summary
- Expectations for a deal between the US and Iran are rising, prompting major Wall Street banks to lower their global oil price forecasts.
- Goldman Sachs lowered its Brent crude forecast to $80 a barrel for the fourth quarter and $75 for 2027.
- Morgan Stanley said Brent crude would average $90 a barrel in the third quarter before easing to $80 in 2026 as supply chains reopen.
Forecast Trend Report by Period
Major Wall Street banks are lowering their forecasts for global oil prices as expectations build for an agreement between the US and Iran.
Walter Bloomberg, an overseas macro news account, wrote on X on June 16 that Wall Street was cutting its oil-price outlook on hopes for an Iran deal.
Goldman Sachs lowered its Brent crude forecast to $80 a barrel for the fourth quarter and $75 for 2027. The bank cited the possibility that export normalization in the Gulf region could proceed faster than previously expected.
Morgan Stanley projected that lost output would recover gradually through early next year. It expects Brent to average $90 a barrel in the third quarter before easing to $80 in 2026 as supply chains reopen in stages.
Expectations for a US-Iran agreement have recently raised the prospect of normalized shipping through the Strait of Hormuz and a recovery in crude exports, adding downward pressure on oil prices. Analysts say stable global crude prices could ease inflation concerns and improve sentiment toward risk assets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
