Goldman Sachs Forecasts Record Oil Prices Above $147 Amid Supply Risks

Goldman Sachs expects global oil prices to surpass the record $147 per barrel due to Middle East supply disruptions and risks surrounding the Strait of Hormuz. While economists like Paul Krugman warn that 'demand destruction' could cap gains, the price surge is already spilling over into broader macro markets. This momentum in energy costs has reignited upward pressure on long-end US Treasury yields, threatening to break out of multi-year trading ranges. Specifically, the 10-year Treasury yield is approaching a critical resistance zone between 4.5% and 4.6%. Analysts suggest that a decisive breakout could see yields targeting cycle highs near 5%, potentially destabilizing the global bond market. Investors are now closely monitoring whether oil-driven inflation will force a structural shift in interest rate expectations and bond market stability.