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

Goldman Sachs has warned that oil prices could soar to $120 per barrel if attacks on shipping in the Middle East continue and intensify. Daan Struyven, co-head of global commodities research at Goldman Sachs, said recent developments suggest a widening and worsening of shipping disruptions is a growing concern.

The warning comes after the US struck three Iranian oil tankers over the weekend, following attacks by Iran's Islamic Revolutionary Guard Corps on two US warships with ballistic missiles. Iranian parliament speaker Mohammad Bagher Qalibaf stated that the era of 'proportionate responses' was over and warned of future retaliation.

Goldman Sachs sees a 'meaningful upside to crude oil prices', while JPMorgan estimates every additional month of disruption could add $7 to $8 per barrel to Brent prices. If the disruption continues for three months, JPMorgan expects average monthly Brent prices to reach around $114 per barrel.