Oil prices could be headed for a significant spike in the coming weeks as global banking giant Goldman Sachs issues a warning that the Strait of Hormuz, a critical waterway through which a quarter of the world's oil exports pass, remains "disrupted." The Strait, which connects the Persian Gulf to the Gulf of Oman, has been a focal point of tensions between the US and Iran, with the risk of a military confrontation potentially leading to a blockade or other disruptions to oil shipments. Goldman Sachs analysts predict that if the Strait remains closed or significantly restricted, oil prices could surge to as high as $120 per barrel, a level not seen since 2019. The warning highlights the fragile global energy landscape and the potential for geopolitical events to send shockwaves through the markets.
Goldman Sachs warns oil could jump to $120 per barrel if Strait of Hormuz remains ‘disrupted’
