Oil price predicted to remain above $100 for rest of year

Oil prices are forecast to remain above $100 a barrel for the rest of the year, according to JP Morgan, as the closure of the Strait of Hormuz continues to disrupt global supplies [1]. The investment bank said its analysis suggests prices will stay in the "low $100s" for most of the year, averaging $97 for 2026, and that a quick normalization of supply is unlikely even if the key waterway reopens [1]. The international benchmark Brent crude rose by more than 4% to $105.94 a barrel on Monday before settling around $105 [1]. The price surge followed U.S. President Donald Trump's rejection of Iran's terms for ending the conflict, which he called "TOTALLY UNACCEPTABLE" in a social media post [1]. The Strait of Hormuz, a transit route for about a fifth of global oil and gas shipments, has been effectively shut since late February [1]. Aramco CEO Amin Nasser stated the resulting supply shock could extend into 2027, noting that rebalancing the market would take months [1]. OPEC's crude output fell by 830,000 barrels per day in April to 20.04 million bpd [1].