Experts Warn Energy Price Would Reach Historic High!

Picture Credit: by Reuters

Global oil markets are facing renewed turmoil as escalating tensions in the Middle East threaten one of the world’s most important energy trade routes. Analysts at Goldman Sachs have warned that oil prices could surpass $100 per barrel within days and potentially climb as high as $150 per barrel by the end of the month if disruptions in the Strait of Hormuz continue.

The warning follows a sharp decline in crude shipments through the narrow waterway, which connects major oil-producing countries in the Persian Gulf with global markets. After the recent joint military action by the United States and Israel against Iran, oil exports through the strait have dropped far more than initially expected. According to Goldman Sachs, the bank had predicted flows would fall to about 15% of normal levels, but an effective blockade has reduced traffic to only 10% of typical cargo volumes.

The disruption is already having a dramatic effect on global energy markets. Analysts estimate the impact is 17 times larger than the production shock that followed Russian invasion of Ukraine, which previously pushed oil prices to around $110 per barrel. If the current crisis continues through March, oil prices, particularly refined fuels, could exceed the peaks seen in 2008 and 2022, both periods that triggered major economic strain worldwide.

Picture Credit: by The Independent

Prices have already begun to surge. Oil climbed above $90 per barrel late last week, marking the largest weekly gains since the COVID-19 pandemic disrupted markets. Weekend trading suggested further increases, with U.S. crude reaching over $94 per barrel, signaling likely price jumps when markets reopen.

Energy analysts warn that the world could face a severe supply shortfall. Clayton Seigle from the Center for Strategic and International Studies noted that the global market is experiencing a deficit of 20 million barrels per day, with little sign of immediate relief.

Overall, oil prices have already risen more than 50% in 2026, jumping from roughly $60 per barrel at the start of the year. With tensions escalating and the Strait of Hormuz still severely restricted, the world economy may soon face another major energy shock.

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