Goldman Cuts Oil Price Forecasts Amid Deal to Reopen Hormuz

Goldman Sachs lowered its fourth-quarter Brent crude oil price forecast to $80 from $90 after the U.S. and Iran signed a preliminary agreement to reopen the Strait of Hormuz.

The investment bank also cut its 2027 average estimate to $75 from $80, expecting Gulf exports to normalize to pre-war levels by the end of July versus the end of August expected previously.

Oil prices eased on Tuesday after U.S. President Donald Trump said a memorandum of understanding was signed to end the U.S.-Israeli war with Iran, which had closed the Strait of Hormuz.

A fifth of the world's oil and liquefied natural gas had passed through the strait before its closure, causing about 14 million barrels per day of output to be shut in.