BMI Forecasts Brent Crude to Remain Above $100 as U.S.-Iran Deal Talks Drag On
Source Summary
Cedric Chehab, chief economist at BMI, told CNBC that Brent crude will remain above $100 per barrel in the coming months as the U.S. and Iran remain distant on a potential agreement. Chehab stated that a deal could take several more months, with BMI forecasting a potential agreement by the end of the first quarter of 2027. Brent crude was trading at approximately $104 per barrel during Asian trade.
Why it matters
Sustained crude prices above $100 per barrel affect global energy costs, inflation expectations, and economic growth forecasts across oil-importing nations.
What remains uncertain
The timing and likelihood of a U.S.-Iran agreement remain uncertain; BMI forecasts a potential deal by end of Q1 2027, but Chehab noted negotiations could take several more months.
