Goldman Sachs Warns Oil Could Hit $120 as Shipping Risks Rise
Brent crude prices surpassed $100 per barrel on Wednesday for the first time since July. Goldman Sachs predicts prices could reach $120 if attacks on Middle East shipping and energy sites intensify. The price surge follows escalated clashes between the U.S. and Iran around the Strait of Hormuz, alongside renewed Houthi attacks on Saudi energy infrastructure. While some reports indicate prices struggled to breach the $100 mark, other sources confirm the threshold was crossed as risks to global energy corridors increase.
What changed
Oil prices exceeded $100 per barrel on Wednesday amid intensified attacks on tankers and Saudi energy sites.
Live updates
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Oil Tops $100 as U.S.-Iran Conflict Intensifies Near Strait of Hormuz
Brent crude prices surpassed $100 per barrel on Wednesday for the first time since July. Goldman Sachs predicts prices could reach $120 if attacks on Middle East shipping and energy sites intensify. The price surge follows escalated clashes between the U.S. and Iran around the Strait of Hormuz, alongside renewed Houthi attacks on Saudi energy infrastructure. While some reports indicate prices struggled to breach the $100 mark, other sources confirm the threshold was crossed as risks to global energy corridors increase.
Why it matters
The Strait of Hormuz is one of the most critical energy corridors in the world. Ongoing military retaliation between the U.S. and Iran threatens to restrict global oil supplies. This instability coincides with separate drone strikes by Ukraine against Russia's Novorossiysk oil port.
What is confirmed
- Goldman Sachs warns Brent crude could hit $120 per barrel if shipping attacks intensify.
- U.S. and Iranian forces are engaged in escalating attacks on tankers and military targets near the Strait of Hormuz.
- Saudi energy sites have faced renewed attacks from Houthi forces.
Still unconfirmed
- Oil prices climbed above $100 a barrel on Wednesday for the first time since July.
- Ukrainian drones hit Russia's Novorossiysk oil port and naval base, killing four.
What to watch next
- Confirmation of whether Brent crude sustains a price above $100 per barrel
- Updates on the operational status of the Novorossiysk fuel terminal
- Official U.S. or Iranian statements regarding the scale of the Strait of Hormuz conflict
confidence 80%Sources used for this update (5)
- www.btimesonline.com — Oil Tops $100 as U.S.-Iran Tanker Strikes Escalate, Goldman Warns Brent Could Hit $120
- dailyhodl.com — Goldman Sachs Raises Oil Forecasts As Middle East Clashes Push Prices Toward $100
- www.41nbc.com — Morning Business Report: Oil prices could reach $120 as U.S.-Iran war escalates
- finance.biggo.com — Oil Prices Fail to Breach $100 Despite Escalating US-Iran Conflict as Three Buffers Counter Supply Disruptions
- oilprice.com — Ukraine Targets Russia's Key Black Sea Oil Port
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Goldman Sachs forecasts $120 oil as US-Iran shipping conflict escalates
Crude oil prices are approaching $100 per barrel following a cycle of retaliation between the United States and Iran. Goldman Sachs warns Brent crude could reach $120 per barrel if attacks on Middle East shipping intensify and disrupt global energy supplies. Recent military action includes U.S. Central Command attacking three Iranian oil tankers. While prices surge, Goldman Sachs maintains a potential downside toward $80 if Gulf exports return to normal. These tensions are already impacting local markets, with petrol prices in Lagos rising to N1,310 per litre.
Why it matters
The conflict centers on shipping corridors in the Hormuz region, where Iran plans to control a new corridor with Oman. Supply disruptions in this area threaten the global energy chain due to the high volume of oil passing through the Strait of Hormuz.
What is confirmed
- Goldman Sachs forecasts crude oil could hit $120 per barrel due to Middle East shipping risks.
- Crude oil prices are nearing $100 per barrel.
- U.S. and Iranian forces have engaged in retaliatory strikes on ships.
Still unconfirmed
- Petrol prices in Lagos have risen to N1,310 per litre.
- U.S. Central Command attacked three Iranian oil tankers.
What to watch next
- Confirmation of Iranian response to the tanker attacks
- Updates on the Oman-Iran shipping corridor agreement
- Goldman Sachs revisions to the $80 downside forecast
confidence 90%Sources used for this update (4)
- www.investmentnews.com — Goldman's $120 oil scenario puts advisor portfolios on alert
- finance.biggo.com — Oil Approaches $100 as U.S.-Iran Retaliation Escalates Supply Fears — Prices Could Hit $120 If Conflict Drags On
- www.legit.ng — Goldman Sachs Warns Oil Could Hit $120 as Petrol Prices Rise to N1,310 in Nigeria
- yellow.com — Oil Could Reach $120 If Iran Conflict Disrupts Shipping, Goldman Sachs Warns
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Goldman Sachs Warns Oil Could Reach $120 Amid US-Iran Shipping Strikes
Oil prices are rising after the United States and Iran traded strikes on ships, sparking fears of supply disruptions. Goldman Sachs warns that Brent crude could hit $120 per barrel if attacks on Middle East shipping intensify, particularly around the Strait of Hormuz. Brent is currently near $97, though Goldman notes a potential downside toward $80 if Gulf exports normalize. Market volatility coincides with a Labor Day holiday in the US, while Iran has announced plans to control a new shipping corridor in the Hormuz region with Oman.
Why it matters
The Strait of Hormuz is a critical global energy chokepoint. Escalating military conflict between the US and Iran threatens the flow of crude oil to international markets. A wider war or sustained shipping disruptions would likely spike the cost of gas and diesel.
What is confirmed
- Goldman Sachs warns oil could hit $120 per barrel if shipping attacks in the Middle East intensify.
- The United States and Iran have traded strikes on ships.
- Brent crude prices are currently near $97.
- Goldman Sachs identifies a potential price drop toward $80 if Gulf exports normalize.
Still unconfirmed
- Iran intends to control a new shipping corridor in the Hormuz region with Oman.
- Donald Trump has dismissed diplomacy with Iran, increasing the risk of a wider war.
- Gas and diesel prices may spike faster than crude oil.
What to watch next
- Further tanker attacks in the Strait of Hormuz
- Diplomatic responses from the US and Iran regarding shipping corridors
- Changes in Gulf export volumes
confidence 90%Sources used for this update (13)
- Reuters — Oil extends gains after US and Iran strike ships
- The New York Times — Oil Prices Rise Slightly After U.S. and Iran Trade Strikes
- WSJ — Oil Rises as Escalating U.S.-Iran Conflict Stokes Supply Disruption Fears
- Bloomberg.com — Goldman Flags Risk of $120 Oil If Mideast Ship Attacks Intensify
- WSJ — Oil Higher on Hormuz Escalation Amid Quiet Markets Due to Labor Day
- Crude Oil Prices Today | OilPrice.com — Goldman Sachs Warns Oil Could Hit $120 as Shipping Risks Rise
- oilprice.com — Iran Says It Will Control New Hormuz Shipping Corridor
- oilprice.com — Goldman Sachs Warns Oil Could Hit $120 as Shipping Risks Rise
- www.ntd.com — Goldman Sachs Says Oil Could Hit $120 if US-Iran Shipping Attacks Intensify
- urbanacres.in — Strait of Hormuz Oil Risk Puts Global Energy Networks on Edge
- www.briefs.co — Goldman says oil could reach $120 if Middle East shipping attacks intensify
- finance.yahoo.com — Goldman Sachs Says Oil Could Hit $120 as Trump Dismisses Diplomacy with Iran