Citigroup raises its oil price forecast amid the Iranian conflict.

PANews reported on March 12 that Citigroup Research has raised its Brent crude oil price forecast to $75 for the first quarter, $78 for the second quarter, and $68 for the third quarter, up from its previous forecasts of $73, $70, and $62 respectively. Citigroup stated that oil prices are likely to fluctuate between $80 and $100 per barrel in the short term. Analyst Eric Lee stated in a report, "We believe that neither the US, Israel, nor Iran wants to see the conflict escalate to the next level, as that would likely involve regional energy infrastructure and Iran's domestic public infrastructure. Therefore, our baseline scenario is that the situation will de-escalate shortly after the US and Israel achieve their military objectives." However, he added that the risk of attacks on regional energy infrastructure remains high, "which could trigger an oil shock similar to that of the 1970s."