Oil Prices Surge as US-Iran War Escalates; Goldman Sachs Eyes $110 Brent

The price of Brent crude oil is on a sharp upward climb, hitting $85.98 per barrel today after a 1.22% jump from yesterday and an 8.09% surge over the last month. This rally comes amidst a dangerous escalation in the US-Iran conflict, with the US launching multiple strikes on Iranian military targets near the crucial Strait of Hormuz, prompting fears of wider disruptions to global oil supplies. Investment giant Goldman Sachs now warns that Brent could even hit $110 per barrel by the fourth quarter of 2026 if disruptions in Gulf oil exports continue. This latest surge follows an unraveling of a fragile truce between Washington and Tehran, with Iran retaliating against US strikes by attacking commercial vessels in the Strait of Hormuz and targeting US military facilities in neighboring countries. The US has reimposed a naval blockade on Iranian ports, further tightening the squeeze on an already tense region. The Strait of Hormuz is a vital chokepoint, through which about one-fifth of the world's oil and liquefied natural gas (LNG) normally passes, making any disruption here a major global economic threat. Looking ahead, markets will be closely watching for any further military actions from either the US or Iran, as well as the effectiveness of the US naval blockade and Iran's responses in the Strait of Hormuz. Goldman Sachs $110 forecast hinges on persistent Gulf export disruptions and insufficient production increases from OPEC+ to offset supply losses. However, the bank also suggests prices could retreat to the $60s if diplomatic efforts succeed and Iranian production recovers quickly. The situation remains highly volatile, and businesses and consumers worldwide should brace for continued uncertainty in energy markets.