U.S. President Donald Trump directed a strike that killed Iran's Quds Force leader Qassem Soleimani, an attack that sent oil prices higher as Middle East tensions spiked.
"This is nonetheless a historically large disruption on critical oil infrastructure and these events represent a sharp escalation in threats to global supply with risks of further attacks," the bank wrote.
A shale oil boom in the U.S. is helping to create a glut in supply, putting pressure on OPEC to cut production.
Oil prices have dropped significantly, with the U.S. benchmark price dipping below $60 per barrel.
"U.S. sanctions against Iran will both weigh on Iran's oil production prospects in the medium term and reduce Iran's crude exports in the short term...," the report predicts.
Prices could reach $90 a barrel.
President Nicolas Maduro said the move will "stabilize and change the country's monetary life in a radical way."
The U.S. is legally "obliged to stop these international breaches and compensate for all the damage inflicted," Iran says.
"You impose sanctions on major producers ... and yet you are asking them to reduce the prices?"
OPEC members have agreed to cut output by 1.2 million barrels per day for the first half of 2017.
Elevation of Khalid al-Falih seen as message that Saudi Arabia is moving forward with plans to be less reliant on oil profits.
Brent crude oil appears to continue rising through what has been a volatile week for the industry.
The government will also sell off state assets to fund the billions in damages.
Alexander Novak believes oil's recovery will continue.
Oil prices have slid more than 25 percent so far this year
The organization has further cut its growth forecast for Russia.
At $30 a barrel, shale oil is no longer profitable, causing cutbacks in the U.S. oil and gas industry.
The last time energy was this cheap, Eisenhower was president.