Goldman Sachs Forecasts Oil Prices Amid US-Iran War

Goldman Sachs Group Inc. forecasts that Brent crude oil will maintain a trading range between $80 and $90 per barrel until the United States and Iran either secure a new nuclear deal or undergo a significant escalation in their five-month-old war.

The investment bank reports a tightening of physical oil markets, noting that global visible inventories fell by 6.3 million barrels per day over a two-week period. This decline stems from reduced flows from the Gulf and Red Sea, lower Russian exports, and Houthi-led blockades in the Red Sea that have cut loaded tanker capacity by 22%.

While Saudi Arabia has shifted some shipments through Egypt's SUMED pipeline, Gulf oil exports have plummeted to approximately 36% of pre-war levels. Market instability remains high after the United States recently delayed planned strikes on Iran, following conflicting signals regarding the management of traffic through the Strait of Hormuz and potential peace talks.