Goldman Sachs: Oil prices could surge to $120 if Middle East shipping attacks escalate

Bloomberg News reported on Sunday that Goldman Sachs Group has warned oil prices could rise to $120 per barrel if attacks on shipping in the Middle East escalate, and recommended betting on natural gas and diesel to capitalize on potential gains.

Dan Struyven, co-head of global commodities research at Goldman Sachs, told Bloomberg Television, "Developments over the past few days suggest that the risk of broader and more intense shipping disruptions is a significant factor that should be considered."

Struyven also told Bloomberg that oil prices could fall to $80 per barrel if exports from the region return to normal levels.

Oil prices have continued to climb amid growing concerns over prolonged disruptions to Middle East supplies, following tit-for-tat attacks between the United States and Iran on vessels in the Strait of Hormuz and other areas.