Fitch: Oil prices could surpass $120 if the Strait of Hormuz continues to be closed
Fitch Ratings said that if the Strait of Hormuz continues to be effectively closed for 6 months, the average price of Brent crude could surpass $120 per barrel this year.
This came in a statement issued by the agency on Friday, during which scenarios related to the possible impact of the closure of the Strait of Hormuz on oil prices were presented.
The statement pointed out that if the Strait of Hormuz is effectively closed for 6 months, the average price of Brent crude could reach $120 per barrel in 2026, while it could reach an average of $100 if its closed for 3 months.
He pointed out that if the Strait of Hormuz is closed for 3 months, the price of Brent crude is expected to rise to $130 per barrel during the closure period, and then drop to about $90 by the end of this year.
If it closes for 6 months, the price is expected to rise to the $130-170 range during the closing period, and then fall to $90 as well by the end of the year.
The Strait of Hormuz being closed is expected to lead to a loss of 15 million barrels per day of oil transport, the statement said, noting that very small quantities are expected to continue to pass through the strait.
On March 2, Iran announced the restriction of navigation in the Strait of Hormuz, and vowed to attack any ships trying to cross the strategic corridor without coordinating with it, in response to the US-Israeli war against the Islamic Republic.
About 20 million barrels of oil pass through the strait daily, and its closure has caused increased shipping and insurance costs and high oil prices, and raised fears of global economic repercussions.
