BlackRock CEO Larry Fink, in an interview on the BBC's Big Boss Interview podcast, warned that if oil prices reach $150 per barrel, the global economy could be dragged into a "harsh and steep recession."

$XTIUSD ‌$XBRUSD ‌

Fink heads BlackRock, the world's largest asset manager (managing approximately $14 trillion in assets), a scale that gives him a privileged perspective on global markets. The interview was published at a time when the ongoing war between the US-Israel and Iran is shaking energy markets.

Two extreme scenarios
Fink emphasized that the outcome of the war "will not be somewhere in the middle," but will evolve into one of two extremes:

1. De-escalation scenario: If the conflict ends and Iran is once again accepted by the international community, oil prices could fall below pre-war levels, to $40/barrel. Fink describes this as a picture of "abundance and growth."

2. Threat Scenario: Even if a ceasefire is achieved, if Iran continues to pose a threat to "trade, the Strait of Hormuz, and the peaceful coexistence of the Gulf Cooperation Council (GCC) region," he predicts that oil prices could remain above $100, near $150, for years. He used the phrase "we will experience a global recession" directly in response to this scenario.

Strait of Hormuz and Supply Shock
At the heart of the crisis, which the International Energy Agency has described as "the largest oil supply disruption to date," is the Strait of Hormuz. The strait carries approximately one-fifth of the world's gas and crude oil supply, and due to the war, oil and LNG shipments have almost come to a standstill.

Fink described the high energy prices as a "regressive tax," noting that the increase in costs disproportionately affects the poor. He stated that $150 oil would rapidly spread inflation through fuel, transportation, production costs, and food prices, forcing central banks to intervene.

Market Reaction
On the day the interview was published, oil prices fell by approximately 4% following news that the US had sent Iran a 15-point proposal to end the war. However, Fink emphasized that the decisive factor was not the duration of the war, but its ultimate outcome.

Fink also stated that if oil remains expensive, countries may reduce their reliance on oil and gas and accelerate investment in renewable energy sources such as solar and wind.
#OilPricesRise
#CeasefireExpectationsRise
#GateSquareAprilPostingChallenge
#CryptoSurvivalGuide
#CreatorLeaderboard