Oil Could Jump to $120 per Barrel as Trump Threatens Iranian Site – Goldman Sachs Warns

In a volatile mix of geopolitics and market speculation, Goldman Sachs issued a stark forecast: oil could jump to $120 per barrel if the Strait of Hormuz stays disrupted.

Why oil could jump to $120 per barrel amid Middle East tensions

The forecast hinges on a projected ↓ 5% dip in regional supply, as naval vessels confront heightened risk of interdiction.

“Any prolonged closure of the Hormuz corridor would compress global inventories and force crude prices toward the $120 mark,” a senior analyst told Reuters.

Meanwhile, President Trump’s recent vow to strike an Iranian nuclear installation adds a geopolitical premium, prompting traders to price in a risk premium that could accelerate the rally. Investors should monitor shipping movements and US Treasury statements for early signals. For a deeper dive into the market mechanics, see the latest report on Bloomberg. If the Strait remains unstable, the oil market may witness the ↑ $120 price level within weeks, reshaping energy cost forecasts across the globe.Correction: An earlier dispatch misstated the timeline for the potential Hormuz disruption.

Reported by Arthur Sterling (Macroeconomics Editor).