Middle East conflict lifts U.S. heavy crude highest since 2020, $100 oil warning
Iran conflict triggered Middle Eastern heavy crude curbs, lifting U.S. Gulf Coast heavy oil to its highest price since 2020 and prompting a weekly gain not seen since 1985. Goldman Sachs warns prices could top $100 per barrel next week if Strait of Hormuz flows remain disrupted.
1. Heavy crude surges to multi-year highs
Heightened tensions in the Middle East prompted several heavy crude producers to curtail output, driving U.S. Gulf Coast heavy oil prices to their highest level since 2020 and attracting additional buyer interest in American barrels.
2. Weekly gain largest since 1985
U.S. oil benchmarks recorded their biggest weekly percentage increase since 1985 as market participants scrambled to secure supplies amid concerns over sustained production cuts in the Gulf region.
3. Goldman Sachs issues $100 per barrel alert
Analysts at Goldman Sachs cautioned that without a swift recovery of flows through the Strait of Hormuz, benchmark oil prices could exceed $100 per barrel as geopolitical risks continue to mount.