Goldman Sachs warns Brent crude could rise to $120 per barrel if Middle East shipping attacks intensify
Tensions over US strikes on Iranian tankers and Iranian threats of heavier retaliation drive oil risk premiums. Japanese yen surged against the dollar, outperforming stocks amidst inflation expectations.
Goldman Sachs co-head Daan Struyven stated that Brent crude could climb to $120 per barrel if shipping disruptions in the Strait of Hormuz worsen. This warning follows renewed hostilities involving US strikes on Iranian oil tankers and ballistic missile attacks on US warships by Iran's Islamic Revolutionary Guard Corps. Iranian President Mohammad Bagher Qalibaf declared the era of proportionate responses over, predicting future retaliation will be faster, heavier, and more painful. JPMorgan also noted further upside if disruptions persist. Meanwhile, the Japanese yen advanced significantly against the dollar, reaching near its highest level this year at 164 yen per dollar. Investors increased bets on a potential rate hike by Japan's Bank of Tokyo to combat inflation. The currency gained over four percent earlier in the week and rose strongly Monday following US market closures due to a public holiday.
