Investment bank forecasts Brent crude could exceed $120 next quarter if Strait of Hormuz tensions persist amid U.S.-Iran hostilities.
Goldman Sachs analysts project Brent crude could surpass $120 a barrel next quarter if disruptions in the Strait of Hormuz continue. The forecast follows a 30% surge in prices from the low $70s to over $90 amid escalating U.S.-Iran tensions, which threaten key oil transit routes.
The bank’s base case assumes Brent averages $80 in Q4 2026 and $75 next year, contingent on de-escalation. However, prolonged conflict could push prices above $100 in 2025, reversing recent downward trends. Recent ceasefire proposals offer limited optimism but remain uncertain.
Oil stocks may benefit from sustained high prices, though volatility is expected as geopolitical risks persist.