Goldman Sees Oil Price Spike to $120 if Middle East Tensions Escalate

Goldman Sachs has warned that crude oil prices could surge to as high as $120 per barrel if attacks on vessels in the Middle East intensify and further disrupt shipments from one of the world’s most important energy-producing regions.

The warning comes as renewed hostilities between the United States and Iran push crude prices higher and reduce tanker movements through the Strait of Hormuz, a critical waterway that handled about one-fifth of global oil supplies before the conflict.

According to Daan Struyven, co-head of global commodities research at Goldman Sachs, recent attacks involving vessels in and around the Strait of Hormuz have increased the risk that shipping disruptions could broaden and become more severe.