Global Recession Risk Looms as Larry Fink Warns Oil Could Hit $150 per Barrel

Kuala Lumpur – Global financial markets are facing renewed uncertainty after Larry Fink, CEO of BlackRock, warned that oil prices could surge to as high as US$150 per barrel, potentially triggering a worldwide economic downturn.

Fink highlighted that escalating geopolitical tensions involving Iran and disruptions in the strategically vital Strait of Hormuz could severely impact global energy supply.

The Strait of Hormuz, a critical maritime chokepoint, handles nearly 20% of the world’s oil and gas shipments, making it one of the most important energy corridors globally. Any disruption in this route could send shockwaves across international markets.

Rising Energy Costs and Economic Pressure

With oil prices already experiencing high volatility, a sustained increase above US$100 per barrel could place immense pressure on global economies. Higher energy costs typically lead to increased production and transportation expenses, which in turn drive inflation.

Fink warned that even if military conflict subsides, prolonged instability could keep oil prices elevated, raising the risk of a global recession.

Market Outlook

Investors are closely monitoring developments in the Middle East as fears grow over supply disruptions and prolonged geopolitical instability. Analysts suggest that continued uncertainty could weaken global growth prospects, particularly for energy-dependent economies.