Goldman Sachs Warns $120 Oil Price Spike Possible Amid Shipping Risks
Oil prices have surged in recent days as tensions escalate in the Middle East. According to Goldman Sachs, oil could hit $120 per barrel if attacks on shipping continue.
The US has struck three Iranian oil tankers in response to Iranian ballistic missile strikes on two US warships. The situation worsened with Iran's announcement of a new 'exclusion zone' which will include the Strait of Hormuz and the Persian Gulf.
'Any ship that enters this area with the intention of passing through the Strait of Hormuz and is identified will be placed on our sanctions list,' said Mohsen Rezaei, head of Iran's Supreme National Security Council.
Brent Crude traded at over $97 per barrel while WTI Crude was above $92 a barrel. Goldman Sachs sees 'meaningful upside to crude oil prices' but warns investors to also bet on rising natural gas and refined product prices.