EL7.AI
CommoditiesMedium•21 July 2026•
1 min read

Goldman Sachs Warns Oil Could Hit $120 Amid Hormuz Disruptions

Key Facts

1Goldman Sachs analysts predict oil prices could exceed $120 per barrel if traffic disruptions in the Strait of Hormuz persist.
2The bank sees oil prices averaging $100 a barrel next year if the waterway continues to be affected.

Amid escalating geopolitical risks threatening global energy supply chains, Goldman Sachs analysts have warned that oil prices could surge past $120 per barrel. This forecast is contingent on persistent traffic disruptions in the Strait of Hormuz, a critical artery for global crude trade. The bank further noted that average prices could settle at $100 per barrel throughout next year if the waterway continues to be impacted by ongoing interference.

These warnings arrive at a sensitive juncture for the energy market, as investors monitor the capacity of alternative maritime routes to offset potential shortfalls. Goldman's estimates align with high-risk scenarios previously outlined by the International Energy Agency (IEA) regarding energy security. Per market data, any disruption in this strait applies immediate pressure on risk premiums, especially as global demand fluctuations persist.

Traders are looking ahead to the API Crude Oil Stock Change report scheduled for later today, which may provide an initial signal regarding the supply-demand balance ahead of official government data.