(Reuters] – Goldman Sachs, NYSE:), expects a significant rise in commodity prices. The firm raised its Brent crude short-term forecast after the West increased its economic sanctions and political sanctions on Moscow.

The range of commodity prices in the near term has become extremely wide due to concerns about further military escalation and energy sanctions. Goldman made the comments in a note sent to clients Sunday.

Russia’s isolation in politics and economy grew as Russia’s forces faced stiff resistance in Ukraine’s capital and other major cities, in what was possibly the most brutal assault against a European country since World War Two.

Goldman stated that Russia’s key producers of commodities, including oil and gas, are expected to see a rise in the prices of these products.

According to the bank, its monthly price forecast was increased from $95 per barrel to $115 per barrel. There are “significant upside potential for further escalation” or prolonged disruption.

Brent crude oil futures rose well above $100 a bar Monday as Ukraine’s crisis intensified. U.S. West Texas Intermediate crude crude futures (WTI), however, were close to $96 a barrel.

Goldman stated that “The Russian escalation creates clear stagflationary threats to the wider economy, driven by higher oil prices. This reinforces our conviction in higher prices for gold in the coming months, and our $2.150/toz price target (troy-ounce).”

On Monday, the ounce traded at $1,900 an ounce. This was its highest trading day since May.

“Gold’s unique role as the currency of last resort will likely be apparent if restrictions on Russia’s central bank accessing its offshore reserves leave it leveraging its large domestic gold stockpiles to continue foreign trade, most likely with China,” the bank said.