Goldman Sachs said that Brent crude oil prices could exceed $120 per barrel in the fourth quarter of this year, averaging around $100 per barrel next year, if supply disruptions through the Strait of Hormuz persist, according to Reuters.

Oil prices fell today as markets balanced reports of mediation efforts between the United States and Iran. Brent crude futures dropped 0.3% to $88.83 per barrel, while US West Texas Intermediate crude for September delivery settled at $82.49 per barrel. Both contracts had hit their highest levels in over a month in the previous session.

According to Reuters, analysts said in a note that the latest escalation in the Middle East and estimated flows from Gulf countries falling below 45% of pre-war levels pose risks that could raise Goldman Sachs' forecasts of $80 per barrel for Q4 and $75 for 2027, which assumed tensions ease in the fourth quarter of this year.

Notably, global energy markets have seen disruption this month, with Brent crude rising above $91 per barrel again against the backdrop of renewed conflict between Washington and Iran, and threats by Yemen's Houthi militants to disrupt maritime navigation in the Red Sea.

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