Middle East Conflict Drives Oil Price Forecast to Hit $90 by June

European Central Bank policymaker Madis Muller says energy prices will stay high due to the Middle East conflict. The unrest-involving the U.S., Israel, and Iran-has disrupted global oil and gas markets, especially through the Strait of Hormuz. The ECB now forecasts Eurozone inflation at 2.6% to 3.1% for 2026, up from earlier projections, and has kept its deposit rate at 2.00% while signaling possible rate hikes.

Prediction markets are pricing a 100% probability that crude oil will reach $90 per barrel by the end of June, reflecting strong confidence in continued price climbs. Key factors include actions affecting the Strait of Hormuz and statements from energy officials in Saudi Arabia and Russia. The ECB’s monetary policy decisions remain critical to watch.