Citigroup sees brent falling to $60 by year-end

Citigroup said shipping activity is returning to normal as logistical disruptions ease.

Citigroup expects Brent crude prices to continue declining, reaching $60 a barrel by year end as disruptions in the Strait of Hormuz ease.

The bank's analysts said the initial period "is likely to remain volatile as shipping routes normalize, insurance markets adjust, and remaining logistical bottlenecks fade," Bloomberg reported citing a Citigroup research note.

The return of orderly shipping patterns and rising traffic volumes suggest commercial operators increasingly view the risk environment as manageable rather than a barrier to their operations.

The bank also expects the current memorandum of understanding (MoU) to hold and evolve into a formal agreement in the coming months, as incentives for de-escalation outweigh alternative options for the United States, Iran, and most countries in the Middle East.