BofA Boosts 2026 Brent Crude Outlook Following Strait of Hormuz Supply Shock

Bank of America significantly raised its 2026 Brent crude oil forecast to $77.50 from $61 following supply disruptions at the Strait of Hormuz that drained 200 million barrels. The bank also boosted price targets for energy exploration and production stocks including FANG, DVN, and OVV.

• →BofA increased 2026 Brent crude forecast by 27% to $77.50 per barrel from previous $61 estimate.
• →Strait of Hormuz disruptions resulted in a 200 million barrel supply drain affecting global oil markets.
• →Energy exploration and production companies FANG, DVN, and OVV received upgraded price targets.
• →The supply shock demonstrates the critical importance of Middle Eastern shipping routes for global energy markets.
• →Higher oil price forecasts could impact inflation expectations and monetary policy decisions.