UBS has raised its oil price forecasts for 2026 and 2027 to $86/barrel and $80/barrel, respectively.

UBS has raised its oil price forecasts for 2026 and 2027 to reflect the closure of the Strait of Hormuz and the ongoing conflict in the Middle East. UBS increased its 2026 oil price forecast by $14 to $86 per barrel and its 2027 forecast by $10 to $80 per barrel. Analysts stated, "This forecast is based on the assumption that the conflict will continue for another two to three weeks, until early April, and that oil flows through the Strait of Hormuz will remain severely reduced. We assume that major oil fields and terminals will not be damaged, and that flows through the Strait of Hormuz will gradually recover from April, but will not fully return to normal." (Jinshi)