By Our Correspondent

National News – The CEO of US financial giant BlackRock, Larry Fink, has warned that if oil prices reach $150 a barrel, it could trigger a global recession.

Speaking exclusively to BBC Business, Fink highlighted that rising tensions in Iran could drive energy costs to extreme levels, with “profound implications” for the world economy.

BlackRock, managing $14 trillion in assets, has a unique perspective on global markets and investment trends.

Fink emphasized that the ongoing Middle East conflict could lead to two very different outcomes.

If a diplomatic solution is reached, oil prices may fall below pre-conflict levels.

However, if tensions persist, he predicts “years of above $100, closer to $150 oil,” potentially resulting in a sharp economic downturn.

The surge in energy costs, he noted, disproportionately affects the poor, acting as a regressive tax.

Countries, he added, must pragmatically diversify their energy sources, combining hydrocarbons with solar and wind to maintain affordable power and support economic growth.

Fink dismissed concerns about a repeat of the 2007-08 financial crisis, stating that today’s financial institutions are stronger and more secure.

He also addressed the AI boom, asserting there is no bubble, but stressed the importance of energy affordability for AI expansion in the US and Europe.

He praised China’s investment in solar and nuclear power and urged Western nations to accelerate their energy transition to remain competitive.

Highlighting workforce implications, Fink explained that AI will generate jobs for electricians, plumbers, and welders, while traditional office roles may evolve.

He criticized overemphasis on university education, advocating for a balance with technical and vocational training.

Fink’s warnings underscore the complex link between energy markets, geopolitical risk, and economic stability, urging governments to act swiftly to ensure energy security and maintain global growth.