Oil Prices Soar as Middle East Tension Drives Up Brent

The war in the Middle East is pushing oil prices higher. Goldman Sachs now thinks the average price for Brent crude will be over $100 a barrel this month because supply is being cut off. If the block at the Strait of Hormuz lasts longer, prices could rise even more. For April, analysts expect Brent to average $85 a barrel. In the last quarter of the year, they now project $71 for Brent and $67 for West Texas Intermediate (WTI). These are higher than earlier forecasts of $66 and $62, showing a shift toward tighter supply.

The new estimates follow a Thursday update that raised the Q4 Brent forecast. The firm warns that if the Hormuz blockage continues for two months, Brent could hit $93 in Q4, with spikes above $100 in the coming weeks. On Friday morning, Brent traded at more than $102 a barrel while WTI was above $97. The International Energy Agency (IEA) and the U. S. government tried to calm worries by releasing large oil stockpiles and allowing Russian tankers to sell from floating storage, but these actions will take time to affect the market. The region remains dangerous for tankers because of the ongoing conflict affecting oil ports in Oman and the UAE. As a result, supply disruptions are likely to persist, keeping prices high.

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