Hormuz Disruption Sends Oil Prices Soaring
Oil prices have been boosted by ongoing tensions in the Middle East, particularly around the Strait of Hormuz. The market is highly concerned about potential disruptions to energy infrastructure and shipping through the strait. According to Kpler data, only seven commodity vessels transited the strait on Monday, down from eight on Sunday.
This has led to a significant premium being embedded in oil prices, with Brent trading around $97.5 a barrel and West Texas Intermediate near $92.9. Goldman Sachs has revised its forecast for December 2026, predicting that Brent will reach $85 a barrel and WTI $80 a barrel.
Despite the disruption, substantial Gulf crude is still reaching the market through alternative export routes. The bank's more cautious year-end view reflects the fact that higher non-OPEC supply could offset part of the disruption and elevated prices may begin to weigh on demand if the conflict drags on.