Energy’s Doomsday? Banks Call for $100-$200: Will Oil Roar Higher?
$WTI Crude Oil - main 2604(CLmain)$ surged 7% today, touching $76 in premarket trading. $Natural Gas - main 2604(NGmain)$ jumped nearly 5% in a single session, while precious metals lagged behind. The real eye of the storm lies in the Strait of Hormuz — the choke point of global energy supply is being squeezed.
The core logic behind the oil and gas spike? Physical supply disruption.
1. Big banks’ targets: Where is oil’s ceiling?
1) Bank of America & JPMorgan see $100–$120
Bank of America strategist Blanch stated bluntly that if Iran attacks nearby facilities, Brent could instantly break above $100, with European gas prices surpassing €60.
JPMorgan’s Kaneva added a critical detail: if the conflict drags on for more than three weeks, Gulf oil could have “nowhere to go.” Once storage capacity is exhausted, producers would be forced to halt output — potentially sending oil straight to $120.
2) Deutsche Bank calls extreme scenario to $200
Deutsche Bank’s Michael Hsueh issued the most aggressive forecast: if Iran fully blocks the Strait using mines and anti-ship missiles, Brent could skyrocket to $200.
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2. Is supply recovery a distant dream?
Trump suggested military action could last 4–5 weeks, or even longer. The U.S. military claims it aims to “completely destroy Iran’s navy,” reportedly sinking 10 vessels so far.
If the U.S. commits to a prolonged campaign, the Strait’s disruption won’t last days — it could stretch into months.
Qatar exported over 80 million tonnes in 2025, accounting for roughly one-fifth of global LNG supply. With production facilities reportedly damaged and export channels blocked, this represents potentially the largest LNG supply disruption risk in modern history.
3. Buy the Dip or Run for Cover?
The energy market is now in extreme backwardation (spot premium). Everyone is scrambling for immediate supply, pushing front-month contracts to extraordinary levels.
If You’re Bullish:
$Energy Select Sector SPDR Fund(XLE)$ might be a stable choice
$ProShares Ultra Bloomberg Natural Gas(BOIL)$ could deliver outsized gains.
$Occidental(OXY)$: Don’t forget Buffett. For every $1 rise in oil prices, OXY’s cash flow improves dramatically.
If You’re Bearish:
Bank of America poured cold water on the rally, warning that if hostilities end quickly, oil could fall “like a rock” back to the $60–$70 range.
How do you see the trajectory of oil and gas prices?
A rapid cooldown or a breakout above $100 in the coming months?
Which position would you take?
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JPMorgan’s Kaneva added a critical detail: if the conflict drags on for more than three weeks, Gulf oil could have “nowhere to go.” Once storage capacity is exhausted, producers would be forced to halt output — potentially sending oil straight to $120.
While it is simple to say that the war seeks to force a regime change, it is worth taking into account the view that the bombardment and air superiority can only achieve so much on the ground.
In the medium to long term, the idea of low(er) cost weapons, specifically one way attack drones, should become a priority for every nation's military force. Extrapolation would therefore mean that whoever comes up with a good and economical counter (not costly systems firing off missiles that cost millions of dollars) measure would rake in the money too.