Goldman Sees $120 Oil as Mideast Shipping Risks Escalate

Goldman Sachs Group Inc. has warned that oil prices may surge to $120 a barrel if attacks on shipping in the Middle East intensify. According to Daan Struyven, co-head of global commodities research at Goldman, the risk of disruptions broadening and increasing is significant.

The US and Iran remain locked in a stalemate over the Strait of Hormuz, with recent events including Washington's attack on Iranian tankers and Tehran's declaration of a new restricted zone outside the waterway. American naval forces continue to blockade Iran's ports while escorting other producers' vessels out.

Goldman has identified two possible scenarios: a $120 target if shipping disruptions worsen, or a lower target of $80 if exports from the region normalize. Brent crude last traded near $97.