(Investing) – BlackRock CEO Larry Fink warned that oil prices could climb to $150 per barrel and trigger a global recession if Iran continues to pose a threat to regional stability after the current conflict ends.
Fink told BBC’s Big Boss Interview podcast published on Wednesday that sustained threats to trade and the Strait of Hormuz could keep oil prices above $100 and approaching $150 for years, with profound economic implications.
“If there is a cessation of war, and yet Iran remains a threat, a threat to trade, a threat to the Strait of Hormuz, a threat to this peaceful coexistence of the GCC region, then I would argue that we could have years of above $100 closer to $150 oil which has profound implications in the economy,” Fink said.
When asked about the impact of oil staying at $150 per barrel, Fink stated: “We will have global recession.”
Oil prices have shown sharp swings since the U.S.-Israeli war on Iran started. On Wednesday, prices dropped about 4% after reports emerged that the U.S. had sent Iran a 15-point proposal aimed at ending the war, raising the possibility of a ceasefire.
The conflict has nearly stopped shipments of oil and liquefied natural gas through the Strait of Hormuz, which normally handles about one-fifth of the world’s gas and crude supply. The International Energy Agency has described this as the biggest-ever oil supply disruption.
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