Oil Could Skyrocket to $100, Warns Goldman Sachs

FomoAnxiety · 2026-03-04T17:53:56+00:00

Brent crude oil prices increased by 10% recently, with concerns over disruptions in the Strait of Hormuz potentially pushing prices above $100. Goldman Sachs predicts capacity issues could last up to five weeks, affecting global oil flow.

FomoAnxiety

2026-03-04 17:53:56

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The price for a barrel of Brent crude oil (BZ) has risen by 10% over the past week, although Goldman Sachs warns that extended disruptions to the Strait of Hormuz could send prices even higher.

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The strait handles 20% of global oil flows and has been operating at roughly 15% capacity since the U.S. and Israel launched strikes on Iran over the weekend. Goldman’s worst-case scenario is for the passage to continue operating at a low volume for five weeks, which could send prices above $100. Another factor that may increase prices is damage to oil infrastructure.

Oil Prices Could Spike Amid Strait of Hormuz Disruptions

Goldman’s base case is for the strait to operate at 15% capacity for five more days, followed by a month-long recovery to normal volumes. Earlier this week, the firm raised its second-quarter Brent crude oil price target by $10 to $76. The firm also lifted its fourth-quarter estimate to $66.

Earlier this week, JPMorgan warned that oil prices could surge to $120 in the event of a prolonged U.S.-Iran conflict, adding that Gulf producers could only maintain normal production for 25 days in the event that the Strait of Hormuz is completely blocked.

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