According to Goldman Sachs Brent crude oil prices could climb to $120 by the fourth quarter of this year. Brent oil prices hit $126.41 on April 30, during the US-Iran conflict. Goldman Sachs believes oil prices could reclaim its April peak if the Middle East conflict continues. Let’s discuss what high oil prices may mean for the stock and cryptocurrency market if Brent oil price climbs as predicted by Goldman Sachs.
Will Stocks And Cryptocurrencies Dip If Oil Price Climbs To Goldman Sachs’ Target?
Goldman Sachs had previously predicted Brent prices to hit $80 a barrel in the fourth quarter and $75 in 2027. The new projection hinges on a continued blockade of the Strait if Hormuz. Oil prices have already surged following the re-escalation of the US-Iran conflict. Moreover, a peace deal does not seem like a reality as of now.
Inflation in the US climbed to 4.2% in May 2026, but dipped to 3.5% in June. The dip in CPI (Consumer Price Index) figures led to a spike in investors taking on more risks. The development was reflected in a spike in cryptocurrency prices. With oil prices surging again, there is a chance that inflation will come in higher for July 2026. Higher inflation may lead to an exodus of capital from high-risk markets. Cryptocurrencies could take a hit under such circumstances.
The stock market may also dip if oil prices continue to surge and the larger economy takes a hit. Retail investors may take a risk-off approach and park their funds in safe havens such as gold. A similar pattern was observed in late 2025.
Also Read: How To Protect Yourself If The Stock Market Crashes In 2026?
There is no telling how long the conflict in the Middle East will last. If a peace deal is finalized and the Strait of Hormuz is reopened, oil prices will likely dip. Such a development could elevate investor confidence and the stock and cryptocurrency markets could surge.