US EditionOil At $110? Goldman Flags Major Risk If Iran Disrupts Strait Of Hormuz Shipping - United States Oil Fund (ARCA:USO)
- On June 23, 2025, Goldman Sachs cautioned that if shipments of oil through the Strait of Hormuz were reduced by half for one month, Brent crude prices could temporarily rise to $110 per barrel.
- This warning follows escalated tensions after U.S. strikes on Iran's nuclear sites and a potential Iranian closure, with Polymarket estimating a 31% to 52% chance Iran will close the strait before July.
- The Strait of Hormuz, a narrow choke point through which nearly 20 million barrels of oil pass daily, is vital for global energy, with Gulf producers' storage nearing capacity and risks of reduced production.
- Goldman Sachs projects that oil prices will ease to approximately $95 per barrel by late 2025 as increased crude supplies from the U.S. and OPEC help counterbalance supply disruptions, while UBS warns that prices could surge above $120 if the Strait of Hormuz is completely closed.
- The risk of disruption remains significant because Iran could use mines or missiles to block shipping, and analysts emphasize strong incentives for global powers to prevent a prolonged closure with major market impacts.
22 Articles
22 Articles
Goldman Sachs Warns About $110 Oil and $5 Gas
Goldman Sachs says that oil could reach $110 a barrel (for Brent crude). In May, the price was near $60. So that would be more than an 80% increase over the period. 24/7 Wall St. Key Points: Goldman Sachs warns that oil could soon reach $110 a barrel. The main trigger for the price surge would be the growing war with Iran. Take this quiz to see if you’re on track to retire. (sponsored) The trigger for the price surge would be the growing war…
Goldman Sachs warned that disruptions to oil supplies through the Strait of Hormuz, as a result of tensions between Iran and the United States, could push Brent crude prices to a temporary peak of $110 per barrel, if flows decline by 50% for a full month, and then by 10% for 11 months...
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