
3 min readUpdated: Mar 25, 2026 05:15 PM IST
BlackRock CEO Larry Fink has issued a warning amid the escalating conflict in West Asia. Speaking to the BBC, Fink said “If oil prices rise to $150 a barrel it could trigger global recession.”
The current conflict began when US and Israel launched coordinated strikes on Iran, killing its Supreme Leader Ayatollah Ali Khamenei along with a host of other military and political leaders. Tehran responded by attacking Israel and US military bases in neighbouring Gulf countries. It also blocked the Strait of Hormuz, a critical maritime choke point that transports a fifth of the world’s crude oil.
The US has attempted to re-open the Strait, with Trump first warning of an attack on Iran’s power plants and later announcing a pause on strikes for five days pending talks. But Tehran hasn’t budget and only a handful of oil tankers have transited the Strait.
This has resulted in global crude oil prices shooting up beyond $100 a barrel but have since recovered a bit on reports of Pakistan handing over a US proposal for peace talks to Iran.
Brent and WTI crude reacting to ceasefire rumors
On Wednesday, oil prices sank about 5 per cent on reports the US had sent Iran a 15-point proposal aimed at ending the war, prompting talk of progress toward a ceasefire. This comes despite Israel and Iran trading airstrikes.
Brent crude futures was down $5.66, or 5.42 per cent, to $98.83 a barrel by 10:22 GMT, after falling as low as $97.57. U.S. West Texas Intermediate crude futures were down $4.82, or 5.22 per cent, at $87.53, off a low of $86.72.
The war has nearly halted shipments of oil and liquefied natural gas through the Strait. Iran told the United Nations Security Council and the International Maritime Organization that “non-hostile vessels” may transit the Strait given they coordinate with Iranian authorities, according to a note seen by Reuters.
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The disruption to oil flow has been termed as the biggest ever by the International Energy Agency, resulting in a daily loss of around 20 million barrels of crude oil. This translates into a loss of some 500 million barrels, or 5 full days, of global supply after 25 days of conflict.
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