Goldman Sachs reduced its oil-price forecasts following the interim US-Iran agreement to end hostilities in the Persian Gulf. The bank now expects Brent crude to average $85 a barrel this year, down from its previous $90 estimate, while West Texas Intermediate drops to $80 from $85. Gulf exports could reach prewar levels by late July, roughly a month earlier than anticipated.

President Trump announced the US would lift its naval blockade of Iranian ports, with the strategically vital Strait of Hormuz set to reopen this week. This de-escalation prompted Goldman to revise its supply outlook, as shipping through the critical waterway may recover to 70% capacity even without full normalization. The formal agreement arrives Friday, though specific terms remain undisclosed.

Looking ahead, Goldman projects Brent at $75 a barrel and WTI at $70 for next year. The bank maintains its view that risks remain balanced—geopolitical tensions could still disrupt supplies while demand concerns persist. Lower oil prices benefit consumers and energy-intensive industries but pressure producers facing reduced revenue.