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Oil Could Spike to $90 If Strait of Hormuz Shut, Citigroup Says
Brent crude could jump to around $90 a barrel if the Strait of Hormuz is closed, according to Citigroup Inc., which added that a prolonged halt to shipping through the crucial waterway would be unlikely.
“Any closure of the Strait could lead to a sharp price spike,” analysts including Anthony Yuen and Eric Lee wrote in a note, citing the bank’s current bullish case scenario. “But we think the duration should be short, as all efforts would focus on a reopening, so that it should not be a multi-month closure.”