A growing number of institutional desks sounded alarms over physical commodity markets this week as maritime chokepoint disruptions intensified across the Gulf.
Goldman Sachs, RBC Capital Markets, JPMorgan, and others warned that a tightening physical market could keep Brent firmly in triple-digit territory and drive prices sharply higher if the disruptions persist.
Joining the conversation was Citigroup Senior Commodities Strategist Eric Lee, who warned Thursday that commodity markets have entered an era of near-constant disruption, with geopolitical, climate, and technological shocks increasingly overwhelming traditional supply-and-demand analysis.
Lee warned:
Commodities markets are in an era where geopolitical, climate and technological shocks routinely overwhelm traditional supply-demand analysis. Rather than only what is most likely, investors need to consider what is plausible, and what markets are least prepared for.
The frequency of major commodities market disruptions appears to be rising. Events once considered "once -a-decade" now seem to emerge every year, or even every six months.
Since the early 2000s, markets have navigated the Global Financial Crisis, the Arab Spring, the US shale revolution, OPEC's strategic policy shifts; since 2020, wildcards include COVID-19, the Russia-Ukraine conflict, trade wars, gold-positive macro concerns, weather-driven agricultural disruptions, and repeated Middle East conflicts.
Timeline showing notable wildcards and shocks impacting commodities, 2000-2026
List of notable wildcards and shocks impacting commodities:
Lee outlined nine high-impact commodity-market wildcards for the second half of 2026 and beyond, warning that the scenarios are not base-case forecasts but risks with consequences too large for investors to ignore:
US-Iran conflict goes from temporary shock to multi-year disruption of Gulf oil production capacity, driving crude oil to $150+, wholesale refined products to $200+, US retail gasoline to $6/gal sustained.
Russia-Ukraine escalation drives renewed oil and gas export restrictions: this could be even more bullish for global gas than for oil.
Critical minerals hoarding goes into overdrive: drives copper to $20k/t and more.
Gold falls another 15–20% near-term before doubling.
Hyper El Niño and other extreme weather: drives ag price spikes, e.g. cocoa back to >$10k/t.
AI boom and bust: buffet electricity, natural gas, uranium, and power-infrastructure metals like copper and aluminium one way, and gold the other way.
Trade war hits US farmers again: US-China trade war resumes, hitting US ag exports, which could push corn below $4.2/bu and soybeans below $10/bu.
2030 LNG glut worsens on Russian Power of Siberia 2 gas pipeline to China: driving global LNG prices like JKM down to $5–6/MMBtu.
Monroe Doctrine extreme: US blockades all Americas oil exports, driving global oil prices to well above $100/bbl, while US benchmarks might be discounted by over $30/bbl.
A look at the Bloomberg Commodity Index (BCOM), a widely tracked commodity-futures benchmark, shows the broader complex, spanning energy, agriculture, metals, and livestock, continuing to climb from its Covid-era lows.
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