Major analysts warn of potential oil price increases if conflict escalates in Middle East

From Yahoo Finance: 2025-06-20 16:34:00

Major analysts predict oil prices could soar if the Strait of Hormuz is blocked due to the conflict between Israel and Iran, with Brent Crude and West Texas Intermediate prices already surging. President Trump’s tariffs are also impacting global economic growth projections, leading to uncertainty and reduced forecasts. The Federal Reserve expects slowing US growth and increased inflation due to tariffs’ effects. Experts warn of potential severe oil price increases if the conflict escalates and the Strait of Hormuz is blocked, which could disrupt global oil supplies. Goldman Sachs analysts predict a temporary price increase to $90/barrel if Iran’s oil supply is significantly reduced, while JP Morgan forecasts prices jumping to $120-$130/barrel if the strait is shut down. The situation could worsen if the strait is blocked for an extended period, potentially leading to oil prices exceeding $100/barrel.

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