Bank of America analysts expect that if the current intensity of military action between the United States and Iran continues and there is no progress in unblocking the Strait of Hormuz, world oil prices will remain at $95-$120 per barrel in the second half of the year, the Associated Press (AP) reported, citing a bank report.
Oil prices could remain at this level if shipping in the Strait of Hormuz continues to be blocked. If the escalation leads to damage to key energy infrastructure in the Middle East, oil prices could rise to $150 per barrel.
At the same time, Bank of America's base case assumes an average oil price of $83 per barrel in the second half of the year. This scenario assumes a gradual increase in oil transit through the Strait of Hormuz.