How Will a U.S.-Iran Agreement Affect Oil Prices?

Daan Struyven, Co-Head of Global Commodity Research and Head of Oil Research at Goldman Sachs Research, noted that oil prices are expected to fall further after the U.S. and Iran reached an agreement to end hostilities and reopen the Strait of Hormuz, but will not return to pre-war levels in the short term. Oil prices still face upside risks due to lingering conflict effects, persistently low inventories, and the risk that the Strait of Hormuz may not fully reopen. Goldman Sachs Research forecasts an average Brent crude price of $75 per barrel next year, below the approximately $80 per barrel level at the time of the podcast recording.