Goldman Sachs raised its Brent and WTI crude price forecasts on Sunday, expecting shipping disruptions in the Middle East to persist into next year.

The team, led by Daan Struyven, lifted its Brent/WTI forecasts by $5 to $85/80 per barrel for December 2026 and to $80/75 for 2027. Markets, the strategists said, are increasingly pricing in a prolonged conflict: Brent spot futures have climbed to $97, while the options-implied probability of Brent topping $100 in March 2027 has jumped to about 25%, from roughly 6% a month ago. 

Oil prices rose on Tuesday, with Brent crude extending gains above $98 a barrel during the session, as investors weighed risks of further disruption to Middle East energy supplies after Iran warned that oil and gas infrastructure across the Gulf could be targeted in retaliation for attacks on its assets.

Brent Oil Futures expiring in November were up 1.7% at $98.64 a barrel by 07:51 ET (11:51 GMT), while U.S. West Texas Intermediate (WTI) crude futures rose 2.7% to $93.92 per barrel.

Gold prices fell 0.6% on Tuesday as expectations for a Federal Reserve rate hike and renewed inflation concerns outweighed support from a weaker U.S. dollar, with investors awaiting key U.S. inflation data later this week.

Investors are also watching U.S. inflation data later this week for clues on the Federal Reserve’s next rate move.

At 09:57 ET (13:57 GMT), XAU/USD fell 0.1% to $4,4405.21 an ounce, while Gold Futures declined 0.6% to $4,448.11. XAG/USD traded flat at $66.17 an ounce, while XPT/USD gained 0.8% to $1,838.78. The U.S. Dollar Index was down 0.3% at 98.83.

The dollar fell on Tuesday, pressured by a sharp rally in the Japanese yen as investors ramped up bets on an imminent Bank of Japan interest rate hike and unwound bearish carry-trade positions ahead of key U.S. inflation data. 

The yen rose 0.2% to touch 154.00 per dollar in early trade - its strongest level since February - as currency desks continued to dismantle bearish carry-trade bets. The Dollar Index, which tracks the greenback against six major currencies, was down 0.3% at 98.81. 

Meanwhile, major European peers held relatively steady in quiet trade: the euro anchored near $1.1610 ahead of Thursday’s European Central Bank meeting, and the British pound held firm around $1.3520.