Investors see possible oil spike, shipping turmoil after U.S. bombing in Iran

Investors are girding for the possibility of more oil price spikes, shipping disruptions and flight cancellations following the U.S. bombing of Iranian nuclear facilities on Sunday.

Goldman Sachs floated a scenario for benchmark crude prices rising more than 40% to $110 a barrel if oil tanker traffic through the Strait of Hormuz is cut in half for a month and supply shortages of 10% continue through the next year.

Brent crude jumped as much as 3% today to its highest level since January.

Air France, Singapore Air, Iberia and Finnair are among the international carriers that have canceled flights to several Gulf destinations this week, including Dubai, Doha and Riyadh.

Investment banks and other international firms that have been building up their presence in the Gulf are reviewing contingency plans for evacuating employees and their families out if the conflict escalates.

Japan’s Mitsubishi UFJ Financial Group has started to pull the families of staff out of locations including Dubai, and will consider evacuating workers if they need to accompany them, Bloomberg reports.

The Mizuho and Sumitomo Mitsui firms are also talking to staff about returning to Japan from offices in Qatar, the UAE and other locations.

Gulf leaders, meanwhile, are in close touch with each other to assess the impact of escalating military conflict in the region.

UAE President Sheikh Mohamed bin Zayed held a round of phone calls on Sunday with Gulf neighbors including Saudi Crown Prince Mohammed bin Salman; Sheikh Mishal Al-Sabah, Emir of Kuwait; Sheikh Tamim Al Thani,  Emir of Qatar, and Oman’s Sultan Haitham bin Tariq.

He also spoke with French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.