Goldman Sachs Warns Oil Could Hit $120 as Shipping Risks Rise
Goldman Sachs analysts warn that oil prices could reach $120 per barrel if shipping disruptions in the Middle East escalate. This follows recent military tensions between the U.S. and Iran, which have already caused a rally in global energy markets.
Why it matters
Rising oil prices pose a significant risk to global inflation and economic stability, particularly if supply chains through the Strait of Hormuz are compromised.
Oil prices could surge to as much as $120 per barrel if attacks on shipping in the Middle East intensify, according to Goldman Sachs. "Events over the last few days do suggest that the risk of shipping disruptions broadening and intensifying is an important one," Daan Struyven, co-head of global commodities research at Goldman Sachs, told Bloomberg TV in an interview on Monday. Oil prices have rallied in recent days amid the re-escalation of hostilities and jumped early on Monday in Asian trading to the highest level since mid-July, nearing the $100 per barrel threshold. The situation escalated further this weekend after the U.S. said it had struck three Iranian oil tankers in response to the IRGC targeting two U.S. warships with ballistic missiles.
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