Goldman Sachs has revised up its price forecast for Brent crude oil due to supply disruptions stemming from the Iran war, CNN reports.

The investment bank said it expects prices to average more than $100 a barrel in March and $85 a barrel in April, before falling to around $70 a barrel later in the year. The bank said the latest estimates show average prices about 20 per cent higher over the rest of the year than in early 2026.

In a research note, Goldman Sachs said the new forecast assumes a three-week period of low flows through the Strait of Hormuz, and a one-month recovery period. Should the war drag out longer, a two-month disruption would push its forecast for oil prices at the end of the year up from $71 a barrel to $93 a barrel.