Goldman Sachs Sees $120 Oil Risk From Shipping Attacks

Goldman Sachs has issued a stark warning that crude oil prices could surge to $120 a barrel if attacks on Middle East shipping lanes continue to escalate, citing the ongoing standoff between the United States and Iran over the Strait of Hormuz as a primary risk factor. The investment bank also outlined an alternative scenario where prices could fall toward $80 per barrel should regional exports normalize. Daan Struyven, cohead of global commodities research at Goldman Sachs, detailed the firm's projections in a recent Bloomberg Television interview. Brent crude was trading near $97 per barrel at the time of the assessment, with U.S. West Texas Intermediate benchmarks also showing gains. The warning comes amid heightened tensions in the critical waterway, which handles approximately one-fifth of global oil consumption. Reports indicate that U.S. naval forces have been blockading ports and escorting vessels through the Strait of Hormuz, while Iran has established restricted zones outside the chokepoint. These actions have raised concerns about broader shipping disruptions that could significantly tighten global supply.