Goldman Sachs has revised its crude oil price forecasts for 2026, citing geopolitical tensions. The bank now predicts Brent crude may reach $71 per barrel by the end of 2026, with West Texas Intermediate averaging $67. This adjustment follows heightened volatility and supply disruptions linked to Middle East conflicts, including a potential prolonged closure of the Strait of Hormuz.
The leading Wall Street institution Goldman Sachs has revised its oil price targets due to intense volatility. The bank unveiled new forecasts predicting crude oil may hit $71 a barrel by the end of 2026, with WTI averaging at $67.
This revision is primarily rooted in the potential for a prolonged closure of the Strait of Hormuz. Goldman Sachs stated that a closure impacting low oil flow for over 21 days could push prices toward those predicted peaks.
The bank added that daily oil prices may exceed 2008 levels if the strait remains closed throughout March. Current market dynamics are heavily influenced by escalating tensions with Iran.
The conflict is reportedly causing the largest disruption to oil supplies in history. “Gulf producers have cut oil production by at least 10 million barrels a day,” stated The Kobeissi Letter, citing a Financial Times report.
The situation has driven oil production to its lowest level in four years. Broader impacts on global energy markets and related asset classes are being closely monitored by investors.
