Middle East Tensions Spark Goldman's $100 Oil Warning

Goldman Sachs has warned that oil prices may surge to $120 a barrel if attacks on shipping in the Middle East intensify. This comes as tit-for-tat strikes between the US and Iran have heightened concerns of a prolonged supply disruption from the region.

The bank's co-head of global commodities research, Daan Struyven, said that events over the last few days suggest 'the risk of shipping disruptions broadening and intensifying is an important one.'

Goldman Sachs also believes that oil prices could fall to $80 a barrel if exports from the region return to normal levels. This would be a significant drop from current prices.