Goldman Sachs Says Oil Could Surpass $120 a Barrel if Hormuz Disruptions Don't Ease. Here's What That Means for Oil Stocks.

Goldman Sachs projects Brent crude could exceed $120/barrel in Q4 2026 if Strait of Hormuz disruptions persist, with an average of $100/barrel in 2027. The base case assumes de-escalation between the U.S. and Iran, with Brent averaging $80 in Q4 2026 and $75 in 2027. Both scenarios present strong opportunities for major oil producers like Chevron and ExxonMobil to generate substantial free cash flow and shareholder returns.