Oil forecast to rise $20 if Iran faces Israeli attack: Goldman Sachs

Oil rigs

Goldman Sachs expects a rise in global oil prices next year if Israel launches a retaliatory attack on Iran targeting production facilities.

Daan Struyven, co-head of Global Commodities Research at Goldman Sachs, said that estimates show if there is a sustained reduction in Iranian production by one million barrels per day, oil prices could increase by $20 a barrel next year.

In an interview with CNBC on Friday, Struyven explained that these estimates assume the OPEC+ alliance will not respond to this event by increasing its output.

If OPEC+ countries were to compensate for some of the lost Iranian production, the price increase would likely be slightly less, around $10 per barrel.

Struyven's remarks came after Israel vowed retaliation following an Iranian missile strike last Tuesday, and US President Joe Biden hinted on Thursday that Tel Aviv might attack Iran's oil infrastructure, with discussions underway about US support for such a move.