Oil could top $150 a barrel if supplies tighten further, Bank of America warns

Bank of America raised its year-end Brent crude forecast and warned that oil prices could surge above $150 per barrel if inventories continue to deplete amid ongoing conflict in Iran. The bank cited tightening supply conditions as the driver behind the potential price spike.

The revised outlook marks a sharp escalation in the bank's crude price expectations as geopolitical tensions threaten to constrain global supply. Bank of America pointed to inventory drawdowns as a critical variable, with the Iran conflict serving as the immediate catalyst for potential disruptions.

The $150-per-barrel scenario represents a substantial premium to current levels and would ripple across energy-dependent sectors, from transportation to chemicals. The bank's forecast revision underscores growing concern among major financial institutions that supply risks are being underpriced in current futures markets.

Oil markets have already demonstrated sensitivity to Middle East developments, and further supply constraints from the region could accelerate the inventory depletion trajectory Bank of America is monitoring.