BofA raises Brent oil forecast to USD 77.50/bbl in 2026 (vs prior forecast of USD 61/bbl) amid ongoing Strait of Hormuz situation; should the Middle East conflict extend into H2, BofA sees Brent averaging USD 130/bbl

BofA's elevated Brent oil forecast reflects heightened concerns around the Strait of Hormuz, a critical chokepoint for global oil supply. If the Middle East conflict persists into the second half of the year, the forecast of $130/bbl suggests severe supply risks, which could drive inflation and impact broader financial markets, particularly currencies sensitive to energy prices like the NOK and CAD.