“It is not a given that any potential retaliation by Iran would target oil producing assets,” Goldman analysts including Jeff Currie said. “The recent incident at the U.S. embassy in Iraq occurred while there was no disruption to neighboring oil fields.”

See also: Iraq Oil Fields Operating Normally But Four Americans to Leave

Brent rallied above $70 a barrel and New York crude edged closer to $65 on Monday as the U.S. warned that there’s a “heightened risk” of missile attacks near military bases and energy facilities in Saudi Arabia, while Iran stated it no longer considers itself bound by the 2015 nuclear pact.

The rhetoric turned even more hostile after President Trump warned Iran of major U.S. retaliation “in a disproportionate manner”, and threatened heavy sanctions on its ally Iraq after its parliament voted to expel American troops from the country in response to the Baghdad attack.

The September strike on key oil producing facilities in Saudi Arabia indicated that the market has significant supply flexibility, according to Goldman. There is only “moderate upside” from current levels, even if an attack on oil assets actually occur, the bank said.

Being long gold is a better hedge than oil to such geopolitical risks, according to Goldman, adding that history shows under most outcomes, the precious metal will likely rally well beyond current levels. The bank maintained its three-, six- and 12-month forecast at $1,600 a ounce.