Oil at $100 could slow global growth says Goldman Sachs
Goldman Sachs analysts report that oil at $100 per barrel could cut global growth by 0.4 percentage point. This surge would also fuel higher global inflation.
Analysts from The Goldman Sachs Group, Inc. warned on Thursday that a significant escalation in the conflict involving Iran could disrupt Middle Eastern energy flows and test the resilience of the global economy. The brokerage noted that a potential surge in energy prices could significantly dampen growth while adding pressure to global inflation rates.
Under its baseline forecast, the firm expects Brent Crude Oil prices to rise slightly before moderating to an average of $76 per barrel in the first quarter of 2026 and $65 by the fourth quarter. This scenario suggests a modest 0.1 percentage point drag on global GDP growth and a 0.2 percentage point increase in global headline inflation.
