LONDON, March 25 — A surge in oil prices to as high as US$150 (RM600) per barrel could push the global economy into a “stark and steep recession”, the chief executive of BlackRock has warned, as geopolitical tensions continue to rattle energy markets.
Speaking to the BBC, BlackRock CEO Larry Fink said prolonged instability involving Iran could keep oil prices elevated for years, with severe consequences.
“If Iran remains a threat” and prices stay high, it would have “profound implications” for the global economy, he said.
Fink outlined two possible paths: a de-escalation that brings oil prices down, or a prolonged period of elevated costs. In the latter scenario, he warned of “years of above US$100, closer to US$150 oil” and “a probably stark and steep recession”.
The comments come as markets react to ongoing tensions in the Middle East, with energy prices swinging sharply as investors assess supply risks.
Fink added that rising energy costs act as “a very regressive tax”, disproportionately affecting lower-income households.
He urged governments to take a pragmatic approach to energy, combining fossil fuels with a faster shift towards renewables to ensure stable and affordable supply.
“Use what you have unquestionably, but also aggressively move towards alternative sources too,” he said.
Despite concerns about market volatility, Fink dismissed comparisons with the 2007–2008 financial crisis, insisting the current system is far more resilient.
“I don't see any similarities at all… Zero,” he said, adding that issues in certain investment funds remain limited in scope.
