The U.S. Energy Information Administration raised its oil-price forecasts for 2026 and 2027 as global inventories decline, diesel markets remain tight and the US-Israeli war on Iran disrupts flows through the Strait of Hormuz. Brent crude is now expected to average about $98 a barrel in 2026, 8% above the EIA's previous forecast, and $105 in the fourth quarter. U.S. retail diesel prices are expected to stay above $6 a gallon in October after reaching record highs last month, before easing to roughly $4.50 a gallon in 2027. The EIA expects Middle East production and exports to recover gradually through alternative routes, including Saudi Arabia's East-West Pipeline and dark transits, while Brent averages $84 a barrel in 2027.