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Stocktwits - Goldman Sachs (NYSE:GS) analysts predict that crude oil prices could soar to $90 per barrel if the ongoing Israel-Iran conflict worsens or draws in other oil-producing nations in the region.
Following Israel’s attack on Iran, U.S. West Texas Intermediate (WTI) futures and Brent crude futures surged by as much as 13%, before paring some of their gains.
According to a report by Yahoo Finance, Goldman Sachs analysts stated in a recent note that the conflict could result in Iran’s 1.75 million barrels per day supply being removed from the market.
Iran’s sole crude oil customer, China, would then have to turn to the Organization of the Petroleum Exporting Countries (OPEC) to satisfy its needs.
Analysts at ING think such a disruption could drag oil supply in the second half of 2025 from a surplus to a deficit, pushing prices upward.
JPMorgan (NYSE:JPM) analysts project Brent crude prices touching $90 per barrel, but subsequently retreating to the $60s as Iran’s oil supply returns to the market.
However, if Iran’s response worsens the conflict and drags in other regional oil-producing countries, oil prices could exceed $100 in the worst-case scenario.
ING analysts expect crude oil to touch $120 in the case of a significant disruption. If the conflict-induced disruptions persist into the end of 2025, the firm expects crude oil prices to trade at new records, potentially crossing the near-$150 mark seen in 2008.
JPMorgan analysts are worried an extended elevation in crude oil prices could torpedo the Federal Reserve’s fight against inflation.
“Our comfort zone remains with oil prices in the $60-65 range, as sustained gains could severely impact inflation, reversing months of cooling in U.S. consumer prices,” JPMorgan said in a recent note.
Higher inflation could also impact President Donald Trump’s hopes of interest rate cuts.
Meanwhile, crude oil ETFs surged over 10% on Friday before paring some of the gains.
The United States Oil Fund LP (NYSE:USO) was up 5.14%, while the ProShares Ultra Bloomberg Crude Oil (UCO) was up 6.2% at the time of writing.
Also See: Israel Has Reportedly Planned Iran Strike For 14 Days, Netanyahu Says ‘Rising Lion’ Has Just Begun