News Desk (ASIa‑Pacific) — Goldman Sachs Group stated that oil prices could rise as high as $120 per barrel if attacks targeting Middle East shipping intensify further. The bank also advised investors to bet on higher natural gas and diesel prices to capture potential energy‑price gains.

Daan Struyven, Co‑Head of Global Commodities Research at Goldman Sachs, said in an interview with Bloomberg TV: “Events over the past few days do show that the risk of shipping disruptions expanding and deepening is a very important factor at present.”

Crude Oil Climbs to Its Highest Level Since July

Amid the ongoing stand‑off between the United States and Iran over the Strait of Hormuz, crude‑oil prices have climbed to their highest level since July. In recent days, the U.S. has attacked Iranian tankers, while Tehran has announced new restricted zones outside the waterway. Meanwhile, the U.S. Navy continues to blockade Iranian ports and escorts vessels from other oil‑producing nations out of the region.

Struyven noted that alongside Goldman Sachs’ upside scenario where oil could hit $120 per barrel, the bank also has a lower target of $80 per barrel should crude‑oil exports from the region return to normal. Brent crude is currently trading near $97 per barrel.

Natural Gas and Diesel Have Outperformed Crude Oil Gains

More than six months of wartime deadlock has driven up prices across multiple energy products, with natural gas and refined‑product gains outpacing crude oil. As a key industrial fuel, diesel prices have more than doubled so far this year.

“While we believe crude oil still has substantial upside potential, we recommend investors hedge geopolitical risks by going long European natural gas and refined products,” Struyven said. “Going long” refers to betting on price increases. He added: “These markets face larger supply shocks than the crude‑oil market.”

China May Continue to Act as a “Stabilizing Force” in Crude‑Oil Markets

Struyven stated that China is expected to keep playing the role of a “stabilizing force” in crude‑oil markets, curbing market volatility by cutting imports amid high‑oil‑price environments. However, China does not exert the same stabilizing effect in natural gas and refined‑product markets.