WS #15710
The Strait of Hormuz has become a focal point of supply disruption after the IRGC confirmed a supertanker was hit, driving Brent crude above $106 per barrel. This escalation coincides with OPEC Secretary General Haitham Al Ghais revising down 2026 oil demand growth to 400K bpd, highlighting a paradox of tightening supply against weakening demand. The market is pricing in a sustained risk premium, with Goldman Sachs raising its year-end Brent forecast to $90, though current spot prices are testing the $110 psychological barrier.
Middle East Oil Shock & Hormuz Disruption
The Strait of Hormuz has become a focal point of supply disruption after the IRGC confirmed a supertanker was hit, driving Brent crude above $106 per barrel. This escalation coincides with OPEC Secretary General Haitham Al Ghais revising down 2026 oil demand growth to 400K bpd, highlighting a paradox of tightening supply against weakening demand. The market is pricing in a sustained risk premium, with Goldman Sachs raising its year-end Brent forecast to $90, though current spot prices are testing the $110 psychological barrier.