According to Goldman Sachs analysts, Brent crude prices have climbed to $76–77 per barrel, driven in part by heightened geopolitical tensions. The bank estimates the current fuel risk premium to be around $10 per barrel. In recent weeks, escalating conflicts in the Middle East have significantly affected energy costs. Investors are growing concerned over potential supply disruptions, the bank noted in a Wednesday report.
The deepening Middle East crisis has sparked fears among market participants about possible delays in oil shipments. This region is of paramount importance to the petroleum industry. Therefore, traders are quickly adjusting their positions to deal with the problems arising from the fallout, Goldman Sachs said.
With a daily output of about 3.3 million barrels, Iran is currently OPEC's third-largest oil producer. However, the ongoing conflict has weakened its export capacity, further straining global supply and driving fuel prices up.