Oil expected to rise by 20%, analysts say

Shafaq News / Economic analysts are leaning towards a 20% rise in global oil prices due to the ongoing conflict in the Middle East and Iran's control over the vital Strait of Hormuz.

According to CNBC Arabia, oil traders have largely overlooked repeated attacks on ships in the Red Sea. However, analysts suggest that a confrontation with Iran, disrupting the Strait of Hormuz, might result in a surge in crude prices.

As per Goldman Sachs' Chief Oil Researcher Dan Struyven, should disturbances in the Strait of Hormuz persist for a month, prices could skyrocket by 20%. Struyven highlighted the possibility of redirecting shipments away from the Red Sea, but emphasized that crude would remain trapped if the strait were to close, adding, "Any prolonged disruption in the strait could ultimately double oil prices."

While Goldman Sachs has dismissed this scenario, Bob McNally, an analyst at Rapidan Energy Group, sees a 30% risk that the conflict in the Middle East could widen to involve Iran, leading to a significant disruption in oil flows in the Gulf region.