Goldman Sachs said that itexpects its Brent price forecastto peak$10-$20 per barrel in2025 due topotential disruptions in Iranian production.

Israel hassworn to strike Iran for launching a barrage of missiles at Israel on Tuesday after Israel assassinated the leader of Iran-backed Hezbollah a week ago.

The events have increased fears of the potential for a broader war in the Middle East, helping oil prices to post their biggest weekly gains in over a year this week.

“Assuming a two million barrels per day six-month disruption to Iran supply, we estimate that Brent could temporarily rise to a peak of $90 if OPEC rapidly offsets the shortfall, and a 2025 peak in the mid $90s without an OPEC offset,” analysts at Goldman Sachs said in a note.

“Assuming a one million barrels per day persistent disruption to Iran supply, reflecting for instance a tightening in sanctions enforcement, we estimate that Brent could reach a peak in the mid $80s if OPEC gradually offsets the shortfall,” the bank said.

However, Goldman continues to expect Brent to trade in the $70-85 range, and forecast an average price of $77 per barrel for the fourth quarter of 2024 and $76 per barrel for 2025 in case of no major supply disruption.
Source: Reuters (Reporting by Brijesh Patel in Bengaluru, additional reporting by Anmol Choubey; editing by Chris Reese and Diane Craft)