Citigroup has joined a growing chorus of bearish analysts by forecasting Brent crude oil could decline to $60 a barrel by year-end as disruptions in the Strait of Hormuz ease. The prediction marks a sharp reversal from earlier price surges driven by supply fears in the vital shipping channel. The bank's outlook reflects improving confidence that geopolitical tensions in the energy corridor are subsiding.

The Strait of Hormuz serves as one of the world's most critical energy chokepoints, routing roughly one-fifth of global petroleum trade. When tensions flare in this narrow waterway, oil prices typically surge as traders price in potential supply bottlenecks. Citigroup's view suggests those premiums are unwinding as either diplomatic progress or reduced hostile activity takes hold in the region.

This bearish sentiment toward global crude markets reflects multiple factors converging. Beyond easing Middle East tensions, economic data and inventory builds support the lower price scenario. Energy traders now face the challenge of reconciling these technical factors against broader macroeconomic uncertainty as they position for the remainder of the year.