JPMorgan: Hormuz Risk Could Drive Oil to $120 as Brent Surges 8.7%

Key Facts

Strategists at JPMorgan have identified the Strait of Hormuz as the critical catalyst for oil prices to potentially reach their $120 per barrel target. The updated analysis warns that Gulf producers face a strict 25-day storage capacity limit before a total production shutdown becomes inevitable in the event of a transit disruption. Following this assessment, Brent crude experienced an immediate 8.7% surge, climbing to $79.28 per barrel. Analysts emphasize that these technical constraints, combined with geopolitical risks, are significantly heightening concerns over global supply stability. Market participants are now recalibrating their positions as the 25-day technical window adds a layer of urgency to energy security strategies. This development underscores the extreme sensitivity of global energy markets to vital maritime chokepoints and producer logistics.