BlackRock CEO Larry Fink has issued a stark warning that the global economy could face a “stark and steep recession” if oil prices climb to $150 per barrel.
Speaking in a BBC interview published Wednesday, the head of the world’s largest asset manager highlighted how the ongoing conflict involving the US, Israel and Iran is creating the “largest supply disruption in history” particularly around the critical Strait of Hormuz.
Fink noted that while a ceasefire could stabilize markets, the long-term outlook depends on whether Iran remains a regional threat.
He argued that if instability persists, we could see “years of above $100 closer to $150 oil which has profound implications in the economy.” When asked directly about the impact of prices reaching that peak, he stated, “We will have global recession.”
The warning comes as global energy costs act as a “regressive tax” hitting lower-income families hardest.
However, Fink suggested a potential silver lining, noting that sustained high prices could force a rapid shift toward green energy.
He urged a pragmatic approach advising nations to “use what you have unquestionably but also aggressively move towards alternative sources too” to ensure long-term stability and growth.
