StanChart Warns Oil Correction May Prove Short-Lived Amid Hormuz Risks

Standard Chartered argues the recent oil price pullback could be temporary, with Brent in the mid-90s after the drop but likely to stay $10–20/bbl above pre-conflict levels as risk around the Strait of Hormuz persists. They project near-term Brent near $98/bbl and WTI around $92.50/bbl for Q2, noting price direction will hinge on Middle East escalation/de-escalation, logistics delays, and reserve purchases. While Hormuz disruption clouds flows and insurance costs, LNG growth in 2026 could offset some gas losses, though real stability depends on a durable ceasefire and lasting settlement.