Goldman Warns Oil Could Hit $120 as Middle East War Drags On

Crude oil prices could surge to $120 per barrel towards the end of the year if the war in the Middle East extends and the Strait of Hormuz remains closed for longer, Goldman Sachs has warned in its latest prediction in response to geopolitical developments in the Middle East.

"Escalation in the Middle East and the decline in estimated Persian Gulf flows to below 45% of pre-war levels have pushed oil prices back up," Goldman's commodity analysts said in a note, as quoted by Bloomberg.