# Goldman Sachs: Oil prices could surge to $120 Warning of sharp price hikes due to risks in the Strait of Hormuz. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-21 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/79f2bcda-8102-4684-af28-193c82a1e9b5 ## Warning of sharp oil price increases Goldman Sachs warned that Brent crude could spike to $120 per barrel due to potential disruptions in the Strait of Hormuz. As the world's most critical oil transit chokepoint, any blockage could send shockwaves through global energy markets. ## Base scenario and upside risks The investment bank's base case assumes Brent averaging $80 in Q4 and $75 in 2025 if Middle East tensions ease. However, logistical risks in Hormuz and the Red Sea create significant upside price potential that could disrupt these forecasts. ## Geopolitical tensions escalating Renewed tensions between the U.S. and Iran, coupled with Houthi threats of naval blockades against Saudi Arabia, have already pushed oil prices back above $91. Military activities in the region continue to threaten energy supply security. ## Q2 inventory drawdowns Declining global oil inventories have increased market vulnerability to supply shocks. However, weaker Chinese imports and demand elasticity may serve as limiting factors for further price rallies in the coming months. ## Diplomacy amid conflict While diplomatic efforts like the proposed 10-day ceasefire continue between the U.S. and Iran, military exchanges persist. Iran's attacks on Kuwait and U.S. strikes on Iranian cities are deepening regional instability and supply concerns. ## Pivotal moment for energy markets The Strait of Hormuz handles 21 million barrels of daily oil transit. Disruptions at this critical chokepoint could create domino effects across the global economy. Investors should brace for continued volatility amid these geopolitical risks. ## Sources covering this story - https://economictimes.indiatimes.com/markets/commodities/news/oil-prices-to-hit-120-soon-goldman-sachs-makes-big-prediction-as-hormuz-concerns-loom/articleshow/132530153.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._