economy
Brent oil prices could surge past record high if Iran war disruption persists, Goldman says
The attacks by Israel and Iran against energy infrastructure highlights that the market faces a supply risk beyond disruption to the Strait of Hormuz.
TL;DR
- Goldman Sachs warns Brent oil prices could surpass the 2008 record of $147.50 per barrel.
- Prices could surge by $42 per barrel through the end of 2027 under specific disruption scenarios.
- A prolonged period of low oil flows through the Strait of Hormuz and significant Middle East production cuts could trigger this surge.
- Brent oil prices have already increased by 49% during the current conflict.
- Recent attacks on energy infrastructure highlight risks beyond Strait of Hormuz traffic disruptions.
- Historical supply shocks show oil production dropping significantly due to damaged infrastructure and low investment.