But pundits are still predicting $100 oil if the war continues: File Image/Pixabay

While oil prices on Wednesday remained at their highest levels in over a year, they settled unchanged as fears of a forever war between the U.S. and Iran clashed with the notion that the strikes and counter strikes between the two countries may only last weeks.

Brent remained unchanged from Tuesday’s close at $81.40 per barrel, and West Texas Intermediate settled up 10 cents to $74.66.

However, while it seemed the war-inspired rally had run out of steam, talk of oil at $100 per barrel remained.

“The U.S. has signalled a four- to five-week campaign, Iran is seeking to regionalize the conflict and the crucial Strait of Hormuz chokepoint is effectively shut; these developments could overturn previously unfavourable supply-demand dynamics, pushing crude higher and bringing the $100 threshold into view,” said Nikos Tzabouras, senior market analyst at Tradu.com.

Bernstein and Macquarie Group Perspective earlier raised its 2026 Brent oil price assumption from $65 to $80 per barrel, but saw prices reaching $120-$150 in an extreme case of prolonged conflict.

Jordan Rizzuto, chief investment officer at GammaRoad Capital Partners, told media, “What’s changed in the last 24 hours is the slow awakening that this has the potential [for] long-lasting energy-supply disruption and long-lasting inflationary implications.”

In addition to traffic through the Hormuz being suspended, Iraq reportedly cut output by nearly 1.5 million barrels per day (bpd) and said it may have to shut nearly 3 million bpd of output within days if exports do not resume, although the Pentagon and US Energy Department were planning to secure the Strait to ensure safe passage for oil tankers.

Meanwhile, overall, Wednesday offered bullish news about the U.S. economy, with a report stating  that growth for U.S. businesses in the real estate, finance and other services industries accelerated last month at the fastest pace since the summer of 2022; also, prices for these businesses increased at a slower rate.