Oil Price Forecast: Brent Nears $100 as US-Iran Conflict Escalates

• WTI crude has broken above $87 triangle resistance and is targeting $97, while Brent is testing the $100-$102 zone with potential upside to $110-$112 if broken
• U.S. attacks on Iranian tankers and threats to Gulf energy assets increase risk of Strait of Hormuz disruptions, which could delay crude deliveries and raise shipping and insurance costs
• Goldman Sachs revised Brent and WTI forecasts upward by $5, expecting shipping disruptions to persist through 2027, though prices could plummet if a ceasefire is reached or normal shipping resumes

Summary

Key Developments:

Oil prices surged as escalating US-Iran tensions threaten Middle East supply disruptions. WTI crude reached $93 (+0.68%) while Brent approached the critical $100 mark at $99 (+0.47%). Iran threatened retaliation against renewed US strikes and warned that Gulf energy assets are vulnerable. US attacks on Iranian tankers near Kharg Island have heightened concerns about export disruptions through the Strait of Hormuz.

Market Impact:

Goldman Sachs revised its oil forecasts upward by $5 for both Brent and WTI, projecting shipping disruptions will persist into 2027. Analysts warn that further attacks on tankers, terminals, or energy facilities could push Brent above $100, with elevated prices likely through end-2026. Rising shipping and insurance costs add additional upward pressure.

Technical Analysis:

• WTI: Broke out of triangle pattern at $87, currently testing resistance at $92.50. Target price of $97 if it clears $93.80, with bullish indicators including RSI at 65.90 and price above 50/200-day moving averages. Weekly gains reached 9.32%.
• Brent: Broke triangle pattern at $93.50, approaching $100-$102 resistance zone. A breakout could target $110-$112. Price remains above key moving averages with positive momentum indicated by RSI readings.

Outlook:

The analyst maintains a bullish short-term view contingent on WTI holding above $87 and Brent above $88, while cautioning that extreme volatility depends on geopolitical developments. Any ceasefire or normalized shipping could trigger sharp price declines.