Goldman Sachs: Middle East conflict causes the largest oil supply shock on record

⑴ Goldman Sachs stated that the Middle East conflict is causing the largest oil supply shock on record, with refined oil prices rising even faster than crude oil. ⑵ This impact is mainly transmitted through three channels: disruptions in refined oil exports from the Persian Gulf, severely affecting naphtha in Asia and jet fuel in Europe; refinery shutdowns; and reduced supply of medium and heavy crude oil through the Strait of Hormuz, limiting global production of diesel, jet fuel, and fuel oil. ⑶ Analysts from the bank added that rising freight costs, increased natural gas prices, and trade restrictions may further drive up prices.