BlackRock CEO Speaks Out: Oil at US$150 per Barrel, World in Recession
Jakarta - BlackRock CEO Larry Fink has warned of the potential for a global recession if world oil prices surge sharply to US$150 per barrel. The warning comes amid escalating geopolitical conflicts in the Middle East that are driving a spike in global energy prices.
In a BBC podcast interview, Fink said it is still too early to determine the long-term impact of the conflict. However, he assessed that the situation could move in two extreme directions.
“For me, everyone should realise that there will be no middle-ground outcome. There will be two extremes,” Fink stated, quoted on Thursday (26/3/2026).
He explained the first scenario as the conflict de-escalating, with Iran returning to global trade, thereby increasing oil supply and stabilising energy prices.
Conversely, if tensions persist and Iran remains a threat in the region, oil prices could remain above US$100 and approach US$150 per barrel in the long term. According to him, such conditions would have major implications for the global economy.
“The implication of oil at US$40 is about abundance and growth, whereas the other is the result of a possibly severe and sharp recession,” he said.
The surge in energy prices has occurred after the Middle East conflict disrupted global oil distribution routes, including the Strait of Hormuz, a vital pathway for world energy trade.
Currently, Brent crude oil prices are around US$103 per barrel, while West Texas Intermediate (WTI) is at US$91 per barrel.
The rise in energy prices is also being felt at the consumer level. In the United States, the average petrol price has reached US$3.98 per gallon, up more than US$1 from the previous month.
The US government is said to have taken several steps to curb the price surge, from increasing domestic oil production and utilising strategic oil reserves to temporarily easing sanctions on oil sales from Iran, Russia, and Venezuela.
In agreement, United Airlines CEO Scott Kirby has also warned that high energy prices could persist until next year.
“I think if you start looking at what’s happening in the Middle East and how long it takes to recover, that’s a reasonable assumption for us,” he said, as quoted by The Hill.
As a precautionary measure, airlines are reportedly reducing the number of flights to mitigate the impact of soaring energy costs.
“We hope the situation improves, but the planning cost for something like that is quite small. We will reduce flights a bit more than usual, but remain prepared for a long-term high oil price scenario,” Kirby stated.