Fink Warns Global Recession Looms at $150 Oil Amid Iran Conflict
BlackRock CEO Larry Fink has warned of a 'global recession' if oil prices reach $150 per barrel, particularly in the event that Iran remains a threat to global trade and energy supplies after the war ends.
In an interview with the BBC's Big Boss Interview podcast, Fink stated that if there is a cessation of war but Iran continues to pose a threat to the Gulf Cooperation Council (GCC) region, oil prices could remain above $100 per barrel, potentially reaching $150. He emphasized that this would have significant economic implications.
Fink made these comments in the context of ongoing tensions between the US and Iran, which have caused volatile oil prices since the start of the conflict. However, prices dipped 4% on Wednesday after reports emerged of a US proposal aimed at ending the war and potentially leading to a ceasefire.
The Strait of Hormuz, a critical waterway that carries about one-fifth of global oil supplies, has been severely affected by the conflict, with shipments significantly reduced. The International Energy Agency (IEA) has described this as the largest-ever oil supply disruption.