Goldman Sachs announced a sharp cut to its crude‑oil price outlook after President Trump disclosed a diplomatic deal that would lift the U.S. naval blockade and fully reopen the Strait of Hormuz.
Revised Forecasts
Goldman now projects Brent crude at $80 a barrel for the fourth quarter of 2026, trimming the earlier $90 estimate. The bank also lowered its 2027 Brent target to $75, down from $80. West Texas Intermediate (WTI) is forecast at $75 for Q4 2026 and $70 for 2027, reflecting a similar downward revision.
Market Reaction
Traders drove Brent down 3.4% to $87.33 and WTI down 3.2% to $84.88 as the news spread. The Strait of Hormuz, which moves roughly 20 % of global oil and LNG, is expected to resume normal flow by the end of July