Goldman Sachs Boosts Oil Price Forecasts Amid Persistent Mideast Disruptions

Goldman Sachs has raised its forecast for oil prices due to ongoing shipping disruptions in the Middle East. The bank expects Brent crude oil prices to climb above $120 a barrel if average Gulf oil output remains below pre-war levels.

The price forecasts were updated on September 7, with Goldman Sachs now predicting Brent crude will reach $80 per barrel by December 2026 and $75 per barrel in 2027. The bank cited an expectation that shipping disruptions will persist into next year as the reason for the increased forecast.

Iran has threatened the United States with 'economic warfare', highlighting the ongoing tensions between the two countries. The war has led to a cycle of pauses followed by periodic flare-ups, resulting in lower-than-expected oil output from the Gulf region.