Geopolitical tensions and reduced Persian Gulf flows may push crude to $120 per barrel by year-end, analysts warn.
Goldman Sachs forecasts crude oil prices could climb to $120 per barrel if the Middle East conflict persists and the Strait of Hormuz remains closed. The bank cited escalating tensions and a decline in Persian Gulf flows to below 45% of pre-war levels as key drivers for the upward pressure on prices.
This prediction follows prior bullish outlooks from the investment bank, reflecting ongoing concerns over supply disruptions. Analysts noted that geopolitical risks in the region have already contributed to recent price increases, with further escalation likely to tighten global oil markets.
The warning comes as traders monitor developments in the Middle East, where instability has historically impacted energy supplies and pricing.