The U.S. Energy Information Administration (EIA) stated in its monthly report on Tuesday that Brent crude prices will remain above $95 per barrel for the next two months due to supply disruptions caused by conflict involving Iran, before declining to around $70 by the end of the year. In its Short-Term Energy Outlook, the EIA highlighted that the Strait of Hormuz, a critical chokepoint for one-fifth of global oil transit, has been largely blocked to shipping, which is expected to cause further declines in oil production from the Middle East in the coming weeks. The agency raised its 2026 Brent crude price forecast by 37% to $79 per barrel and projected that Brent prices will fall below $80 per barrel in the third quarter of this year. The EIA also forecast that U.S. retail gasoline prices will average $3.34 per gallon, a 14.7% increase from previous estimates, while its diesel price forecast was raised to $4.12 per gallon, approximately 20.1% higher than earlier projections. The EIA noted that rising oil prices will stimulate increased U.S. crude production, with average daily output expected to reach 13.61 million barrels this year and climb to 13.83 million barrels by 2027. Previous EIA forecasts had projected 2026 production at 13.60 million barrels per day and 2027 production at 13.32 million barrels per day.