Analysts Update Oil Price Projections Amid Ongoing Iran Conflict

March 13 (Reuters) - Leading financial institutions, including Goldman Sachs and Bank of America, have adjusted their average oil price forecasts for 2026 as the conflict in Iran nears the two-week mark. Analysts are predicting that oil prices will remain high in the short term due to concerns over supply disruptions in the Strait of Hormuz, a crucial passage for over 20% of global oil shipments. Nevertheless, they generally foresee prices beginning to stabilize later this year. This week, Brent crude and U.S. West Texas Intermediate (WTI) futures surged to their highest levels since June 2022, trending towards weekly increases of more than 10% and 7%, respectively. Iran's new Supreme Leader, Mojtaba Khamenei, reiterated on Thursday that the Strait of Hormuz would remain closed as leverage against the United States and Israel, amid a Middle Eastern crisis significantly affecting millions and causing volatility in energy and financial markets globally. Here are the price projections: - Goldman Sachs: Expects Brent to average $75/bbl in 2026 and $71/bbl in the next three months. - BMI: Anticipates an average of $70/bbl in 2026 and $68/bbl in 2027. - Citi: Predicts Brent averages of $75/bbl in Q1'26 and $68/bbl in Q3'26. - Bank of America: Forecasts an average of $80/bbl in Q2'26, with prices dropping to $65/bbl in 2027. - HSBC: Sees 2026 prices reaching $80/bbl with potential rises due to continued disruptions. - Macquarie: Suggests prices could exceed $150/bbl if the Strait of Hormuz remains closed for an extended period. - UBS: Believes prices could surpass $100/bbl and into severe demand destruction territory above $120/bbl if disruptions persist. (Reporting by Pablo Sinha in Bengaluru; Editing by Susan Fenton)