Washington: Brent oil prices are expected to remain above $95 per barrel over the next two months as a result of disruptions caused by the ongoing war in Iran. The Energy Information Administration (EIA) has projected that prices will eventually decline to approximately $70 by the end of the year.

According to Azeri-Press News Agency, oil shipments are facing significant challenges due to restricted access to the Strait of Hormuz, a critical passageway responsible for the transit of one-fifth of the world's oil supply daily. This blockade is anticipated to lead to a further decrease in Middle East oil production in the coming weeks, as highlighted in the EIA's Short-Term Energy Outlook.

Saudi Arabia has initiated oil output cuts, with sources confirming that other Gulf nations, including Iraq and Kuwait, have also reduced production amidst the ongoing constraints. The EIA notes that these reductions are expected to gradually ease as shipping through the Strait of Hormuz resumes. Once normal transit operations are restored, global oil production is predicted to surpass demand once more.

Brent crude futures have seen an increase of approximately 21% so far this month, based on data provided by LSEG. The EIA has adjusted its price forecast for Brent, increasing it by 37% from the previous month to $79 a barrel by 2026. It also anticipates that Brent prices will dip below $80 a barrel in the third quarter of this year.