Major banks including Goldman Sachs have raised their oil price forecasts as shipping disruptions in the Strait of Hormuz continue to weigh on Brent and WTI crude. Prediction markets now put a 14% chance of oil hitting a new all-time high by the end of the year.
Goldman Sachs has raised its oil price forecast for late 2026 and beyond, citing expectations that Middle East shipping disruptions will persist into next year. The revision follows a sharp decline in vessel traffic through the Strait of Hormuz, which faces a significant shipping slowdown that is affecting both Brent crude and West Texas Intermediate (WTI) benchmarks.
Citi, UBS, Barclays, and J.P. Morgan have also revised their oil outlooks upward in response to the Gulf disruptions, joining Goldman Sachs in the shift.
Odds of a new high tick up
Markets have responded to the revised forecasts. Current pricing suggests a 14% likelihood of crude oil reaching a new all-time high by December 31, according to prediction-market data cited in the report. The ongoing disruptions and the revised forecasts from major financial institutions appear to be driving that sentiment higher.
What comes next
Observers are watching for further developments in the Strait of Hormuz shipping situation, the actions of key OPEC members, and any geopolitical developments in the Middle East that bear on crude oil supply.
Source: Crypto Briefing
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