Fitch raises 2026 Brent forecast to $87 and cuts global growth view on Hormuz shutdown risk

Fitch said a 14-week Strait of Hormuz closure, in a U.S.-Iran war-driven oil crisis scenario, would lift its 2026 Brent assumption from $70 to $87 a barrel and trim global growth to 2.4%.

Summary

Fitch Ratings said in its latest Global Economic Outlook that, under an oil crisis scenario driven by a U.S.-Iran war, it would raise its average 2026 Brent crude price assumption to $87 a barrel from the $70 level set in March if the Strait of Hormuz remains closed for 14 weeks and begins reopening in July. In the same scenario, Fitch lowered its 2026 global growth forecast by 0.2 percentage point to 2.4%, highlighting the economic impact of a prolonged disruption at the key oil shipping chokepoint.

Terms & Concepts
  • Brent crude: A global benchmark price for oil.
  • Strait of Hormuz: A key shipping route and oil transit chokepoint for Gulf exports.
  • Global Economic Outlook: Fitch Ratings' publication outlining its economic forecasts and scenarios.