Goldman Sachs cuts oil price forecast on Iran deal

16th Jun 2026 10:12

(Sharecast News) - Goldman Sachs cut its oil price forecast on Tuesday as it now assumes an earlier recovery in Middle East supply following a deal to reopen the Strait of Hormuz.

The bank said it now expects Persian Gulf exports to normalise to pre-war levels by the end of July, versus end of August previously.

Goldman slashed its Q4 2026 Brent crude forecast to $80 a barrel from $90, while its average forecast for 2027 was cut to $75 a barrel from $80. Goldman now expects West Texas Intermediate to average $75 in Q4 2026 and $70 in 2027.

US Vice President JD Vance has said a memorandum of understanding between the US and Iran is expected to be formally signed in Geneva later this week. Meanwhile, ahead of the G7 summit in France, US President Donald Trump declared that the strait of Hormuz would "completely open" from Friday.

"The deal's all signed. And the strait ⁠is already partially opened," Trump said as he arrived at the summit in Evian-les-Bains.