Bank of America Raises Chevron Price Target to $206 on Hormuz Risks
Bank of America raised Chevron’s price target from $188 to $206 to reflect an elevated oil risk premium following U.S. strikes on Iranian targets. Disruptions in the Strait of Hormuz—handling 14MMbpd of crude—pushed Brent more than $10/bbl higher, with near-term impacts of $10–$20/bbl anticipated.
1. BofA Raises Chevron Price Target
Bank of America increased its price target for Chevron to $206 from $188, citing an elevated oil risk premium in response to recent geopolitical tensions in the Middle East.
2. Hormuz Strait Disruptions Elevate Risk Premium
U.S. strikes on multiple targets in Iran have led to reported restrictions on vessel transit through the Strait of Hormuz, a chokepoint responsible for about 14 million barrels per day of global oil supply and 20% of LNG flows.
3. Market Impact and Near-Term Outlook
Brent crude jumped more than $10 per barrel, exceeding $82 at Sunday’s open. BofA forecasts near-term crude price effects of $10–$20 per barrel and notes OPEC+ plans to restore 206,000 barrels per day in April, contingent on safe passage through the strait.