Goldman Sachs Says Iran's Policy Decisions Key to Strait of Hormuz Oil Flows

Brent crude rose to around $80 per barrel on Wednesday after renewed U.S.-Iran tensions increased concerns over oil supplies following reported attacks on commercial vessels near Oman (Source: Reuters).

In a research note, Goldman Sachs said the recovery in oil shipments through the Strait of Hormuz is currently being influenced more by geopolitical developments than by shipping capacity.

According to the bank, crude flows through the Persian Gulf had recovered to more than 80% of pre-conflict levels before easing to around the low-70% range in recent days. Goldman Sachs noted that available tanker capacity remains sufficient, suggesting that policy and security developments are playing a larger role in determining export volumes.

The bank also said crude production across key Gulf producers remains below pre-conflict levels, while refinery disruptions in Russia have added pressure to global fuel markets.

Investors continue to monitor developments in the Middle East, including diplomatic efforts and shipping conditions around the Strait of Hormuz, for signs of potential changes in global oil supplies.