Citi cuts Brent forecasts as U.S.-Iran MoU points to Strait of Hormuz flow normalization - Reuters

Morgan Stanley and Citi have significantly reduced their oil-price and Brent forecasts for upcoming quarters. This adjustment follows an interim deal and MoU between the US and Iran to reopen the Strait of Hormuz, which is expected to normalize flows and revive regional output. While the increased supply may stabilize prices and benefit energy-intensive industries, it is anticipated to put pressure on high-cost producers as global oil supplies increase due to the agreement.