iMetal

Up to 75% of the previous oil flows through the Strait of Hormuz are expected to return to the market by the end of the year, but significantly lower oil prices aren’t guaranteed for 2027 as the ongoing U.S.-Iran tensions are unlikely to be resolved for good soon, Fereidun Fesharaki, chairman emeritus of FGE NexantECA, told CNBC on Monday.

Before the Iran war, the consultancy FGE NexantECA expected oil prices to be in the upper $50s low $60s per barrel next year. This could still be the case in 2027, but it rests on the assumption that a lasting peace will be reached, Fesharaki said.

Fesharaki said he personally sees as “impossible to imagine” a scenario in which the U.S. and Iran reach a lasting peace deal.

“There will be more conflict, there will be more trouble, this is not the end of the story. This is the beginning of the story,” Fesharaki said.