The leading Wall Street banking institution, Goldman Sachs, has once again revised the oil price targets. The constantly evolving geopolitical narratives have ended up pushing the oil domain into a frenzy, bringing in intense volatility for the sector to deal with in the last few days. The constant oil spikes, with the commodity hitting $100 a barrel, have left the domain quite jittered, compelling institutions like Goldman Sachs to issue new oil price forecasts for 2026.

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What’s the Latest Oil Price Target by Goldman Sachs?

Goldman Sachs has recently unveiled new oil price targets for the end of 2026. Per the leading global investment bank, crude oil may hit $71 a barrel by the end of 2026, with WTI averaging at $67/barrel by the end of the year.

Earlier, Goldman Sachs had forecasted $66 and $62 for Brent and WTI, under normal circumstances. The reasoning behind the new forecasts revealed by Goldman Sachs is primarily rooted in the notion that predicts a prolonged closure of the Strait of Hormuz. The investment bank stated that the low oil flow passing through the strait for more than 21 days, followed by a 30-day gradual recovery, may end up impacting the oil domain gravely, with oil prices stabilizing near the aforementioned predicted peaks.

The bank was quick to add additional notes, claiming how daily oil prices may exceed 2008 oil levels if the strait remains closed throughout the month of March.

Oil Price Update: What’s Happening Right Now

The US’ war with Iran is currently a trending topic of discussion as it continues to weigh heavily on the oil and gas sector. Per the latest report by the Kobeissi letter, citing FT, Gulf producers have now cut oil production by 10M barrels a day, with the war pushing the production of oil to its lowest levels in about 4 years.

“BREAKING: The Iran war is now officially causing the largest disruption to oil supplies in history, per FT. Current oil market situation. 1. Gulf producers have cut oil production by at least 10 million barrels a day. 2. The Iran war has driven production to its lowest level in four years, per the IEA. 3. The IEA expects world output to fall by 8 mn b/d in March as a result. 4. This represents a decline of over 7% from the 107 million b/d produced in February. Iran is now requiring “reparations” for a ceasefire deal.”

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