Goldman Sachs Warns Oil Prices Could Hit $120 Amid Escalating Middle East Tensions

Goldman Sachs has warned that oil prices could reach $120 per barrel if Middle East shipping attacks intensify. This prediction comes after recent events, including U.S. strikes on three Iranian oil tankers in response to Iran's targeting of two U.S. warships with ballistic missiles.

In an interview, Daan Struyven, co-head of global commodities research at Goldman Sachs, stated that recent events point to a significant risk of shipping disruptions broadening and intensifying.

Oil prices have rallied in recent days, with Brent crude trading above $97 per barrel and West Texas Intermediate above $92 per barrel. The escalation followed the U.S. strikes, which led to Iranian parliament speaker Mohammad Bagher Qalibaf declaring that the era of proportionate responses is over.