According to foreign sources, Goldman Sachs believed that the price of Brent crude oil could rise to $120 per barrel by the fourth quarter of the year if the Middle East conflict persisted and transport in the Strait of Hormuz was blocked. The article thus argues that the re-high oil prices may put pressure on the stock market and encrypted assets by raising inflation expectations and lowering risk preferences.

Oil prices are expected to go up again.

It was reported that Brent crude oil had risen to US$ 126.41 per barrel on 30 April, when the conflict between the United States and Iran escalated. Goldman Sachs had previously projected oil prices for the fourth quarter at $80 per barrel and projected 75 for 2027. This higher target is based on the continuing restriction of traffic in straits.

If the situation continues to deteriorate, oil prices may return to the April high point. On the contrary, the price of crude oil could fall if the regional situation eased and shipping resumed.

Risk preference or disturbance of inflation back behind

According to the article, inflation in the United States in May 2026 was 4.2 per cent, falling back to 3.5 per cent in June. Inflationary data lag behind, market risk preferences have improved, and the price of encrypted assets has increased.

But if oil prices continue to move up in July, energy costs may again push up the inflation reading. According to the article, this would weaken investors ' willingness to allocate high-risk assets, and funds could be withdrawn from more volatile markets such as encrypted assets.

Risk avoidance assets or re-inflow

In addition to the encrypted market, the stock market may be similarly affected. According to the article, if high oil prices slow down overall economic expectations, retail investors may turn to risk-averse assets such as gold rather than continuing to increase stock and encryption assets.

  • Brent Oil Extreme Expectations: $120 per barrel
  • April 30, mid-drive: 126.41 USD per barrel
  • United States June inflation rate: 3.5 per cent

If the situation in the Middle East is eased, market logic may also quickly reverse. The article argues that once the ceasefire has moved forward and the Strait of Hormuz returns, the fall in oil prices will help to boost investor confidence and the pressure on stock markets and encrypted assets will be reduced.