Oil Prices Soar on Strait of Hormuz Uncertainty

Oil prices have climbed to a six-week high as commodity traders worry about prolonged uncertainty in the Strait of Hormuz. Analysts and Goldman Sachs see further upside, with Brent futures trading around $97 per barrel.

Daab Struyven, co-chair of commodities research at Goldman Sachs, said that crude oil prices could see meaningful gains due to shipping disruptions broadening and intensifying in the strait. He sees potential for Brent to reach $120 per barrel.

Jorge Leon, head of geopolitical analysis at Rystad, estimated that the U.S.-led effort recently averaged eight million barrels per day but has dropped sharply to about 4-5 million barrels per day due to increased tensions.