Analysts predict that a potential oil shock could strain emerging markets beyond inflation and lead to Brent crude futures rising above $100 per barrel if the ongoing conflict continues. These concerns stem from Iran's threats to close the Strait of Hormuz and fire on any ships attempting to cross the crucial shipping route. Goldman Sachs estimates that a rise in Brent crude from $70 to $85 per barrel could add roughly 0.7 percentage points to inflation across emerging Asia and knock about 0.5 points off economic growth, while widening current account deficits across almost every economy in the region. Citigroup warns that a prolonged oil shock may significantly de-anchor inflation expectations across emerging markets, particularly low-reserve countries like Argentina, Sri Lanka, Pakistan and Turkey.