Goldman Sachs Warns of $120 Oil as Shipping Disruptions Intensify

Goldman Sachs analysts have warned that oil prices could surge to $120 per barrel if attacks on shipping in the Middle East escalate. The warning comes amid a recent increase in hostilities, with oil prices nearing their highest level since mid-July.

According to Daan Struyven, co-head of global commodities research at Goldman Sachs, disruptions to shipping could have significant consequences for crude oil prices.

Brent traded above $97 per barrel, while U.S. WTI traded above $92 per barrel on Monday, with tensions rising after the United States said it had struck three Iranian oil tankers in response to ballistic missile attacks from the Islamic Revolutionary Guard Corps.