Goldman Sachs flags possible oil spike to $120 a barrel

Goldman Sachs has warned that oil prices could climb to $120 a barrel, according to a report by ProFinance.Ru published on Monday, September 7, 2026. The warning comes as markets remain focused on the ongoing conflict involving Iran and its impact on global energy supplies.

The bank’s assessment points to a risk of a sharp price surge, rather than a baseline forecast, ProFinance.Ru reports. The potential jump would represent a significant increase from current levels, with oil already trading near the $100 mark, as noted in related coverage from The Bell.

The warning arrives amid heightened volatility in the energy sector. Separate reporting from Finances Mail indicates that trading houses Mercuria and Gunvor have doubled their profits during the Iran conflict, underscoring how geopolitical tensions are reshaping the market landscape. Those firms have benefited from supply disruptions and price swings tied to the situation.

At the same time, political figures are offering contrasting outlooks. According to Interfax and BFM.ru, former U.S. President Donald Trump has said that gasoline prices in the United States would drop sharply once the conflict with Iran ends. Trump’s comments suggest an expectation of a rapid market correction following a resolution, a view that stands in opposition to Goldman Sachs’ risk warning.

oil prices

The divergence between Wall Street’s caution and political optimism highlights the uncertainty facing oil traders. For now, the market is weighing the possibility of further supply shocks against the prospect of a diplomatic breakthrough that could ease prices.

What to watch next: whether the Iran conflict escalates or moves toward a ceasefire, as that will likely determine if Goldman Sachs’ $120 scenario becomes reality or fades.