US and Iran have agreed to extend a fragile ceasefire for 60 days and reopen the Strait of Hormuz.
The agreement has prompted Goldman Sachs to revise its outlook for oil prices and bring forward the timing of its forecast adjustments.
The bank has lowered its oil price projections, now expecting Brent crude to average $80 per barrel in Q4 2026, down from a previous estimate of $90. Its WTI forecast for the same period was also reduced to $75, while the 2027 WTI estimate was cut to $70.
Despite the revised forecasts, the bank expects a lingering geopolitical risk premium to continue providing a floor for oil prices.
A formal signing ceremony is expected on Friday in Geneva.
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