$150 oil could trigger global recession
The head of BlackRock has warned that a sharp rise in oil prices could push the global economy into recession, as geopolitical tensions continue to unsettle markets. Larry Fink said that if oil prices climb to around $150 per barrel and remain elevated, the impact on the global economy would be severe. According to him, prolonged high energy costs could lead to a “steep recession,” especially if instability linked to Iran persists. He outlined two possible scenarios: a de-escalation that could bring oil prices back down, or a prolonged period of elevated prices above $100 per barrel. In the latter case, the consequences for growth, inflation and global demand would be significant. Rising energy costs are already affecting financial markets, with investors reacting to uncertainty in the Middle East. Fink emphasized that higher oil prices act like an economic burden, […]