Commodities

Oil Prices Set to Stay High Post-Iran War, Capital Economics Forecasts

Oil Prices Set to Stay High Post-Iran War, Capital Economics Forecasts

Oil prices remain elevated despite de-escalation hopes in the Iran conflict. Capital Economics predicts Brent crude at around $80 by end-2026 even after a U.S. exit in 2-3 weeks, due to a lasting energy risk premium from moderate infrastructure damage.

Front-month WTI crude futures climbed 1.6% to $102.99 per barrel, while Brent futures rose 1.35% to $105.37, signaling market caution on supply disruptions.

Published on April 1, 2026 | 442 views

Key Takeaways

Key takeaway: Capital Economics cites a lasting energy risk premium from moderate damage to infrastru...
Context: This update is published under Commodities category.
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Frequently Asked Questions

Why will oil prices stay high after the Iran war ends?

Capital Economics cites a lasting energy risk premium from moderate damage to infrastructure, preventing a sharp drop even post-conflict.

What is CE's Brent crude forecast by end-2026?

Baseline sees Brent around $80 per barrel, fitting a U.S. exit in 2-3 weeks while supply risks persist.

What drove today's oil futures gains?

Front-month WTI rose 1.6% to $102.99/barrel; Brent climbed 1.35% to $105.37 on caution over disruptions.

What "baseline situation" does CE describe?

Moderate energy infrastructure damage that sustains premiums, offsetting de-escalation benefits.

How does this affect markets now?

Elevated oil tempers broader rallies from truce hopes, pressuring inflation and Fed rate cut odds.

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