Bank Of America Sees Oil At $100 For Rest Of Year

Bank of America (NYSE: $BAC) now forecasts that crude oil prices will hover around $100 U.S. per barrel for the remainder of 2026.

The second largest U.S. lender says the Iran war is likely to continue disrupting energy flows in the months ahead, especially through the Strait of Hormuz where 20% of the world's crude is shipped.

Bank of America stresses that the Iran war is not an "oil shock" but rather "an energy shock," noting that natural gas and fertilizer prices are also marching higher.

Consequently, the bank raised its global inflation forecast by 90-basis points to 3.3% for this year.

The inflation implications of elevated oil prices are significant, with Bank of America now expecting the European Central Bank to raise interest rates by 25-basis points in June and July.

Those hikes will take the trendsetting interest rate in Europe to 2.50%. The Bank of England is expected to follow a similar path with two rate hikes of the same size over the summer.

Bank of America also warns that the expected interest rate cuts from the U.S. Federal Reserve this year "may not materialize."

In its worst-case scenario, Bank of America sees crude oil prices averaging $130 U.S. per barrel in 2026 and peaking above $150 U.S.

Brent crude oil, the international standard, is currently trading at $101.75 U.S. per barrel.

COMTEX_476373799/2797/2026-04-01T12:40:23