BofA Boosts Exxon Mobil Target to $151 on Iran Risk Premium
Bank of America raised Exxon Mobil’s price target from $135 to $151 as geopolitical tensions boosted the oil risk premium. The bank cited Strait of Hormuz disruptions—which handle about 14 MMbpd of crude—and noted Brent crude jumped over $10 to above $82 per barrel.
1. Bank of America Raises Exxon Target
Bank of America lifted its price target for Exxon Mobil from $135 to $151 to reflect an elevated oil risk premium driven by recent geopolitical events. The adjustment follows weekend U.S. strikes on Iranian targets and Iran’s reported interdiction of vessel traffic through the Strait of Hormuz.
2. Strait of Hormuz Disruptions Impact Supply
The bank highlighted that the Strait of Hormuz carries roughly 14 million barrels per day of crude and 80 million tonnes per year of LNG, noting unconfirmed but concerning military communications halting tanker transit. Brent crude rallied over $10 to exceed $82 per barrel on these supply fears.
3. Near-Term Price Effects and OPEC+ Outlook
BofA estimates oil could face a $10 to $20 per barrel impact if the strait remains closed, though effects may be short-lived if passage resumes. The bank also noted OPEC+ aims to restore 206,000 barrels per day of output in April, contingent on secure shipping routes through Hormuz.