yahoo news | BlackRock boss Larry Fink: Oil at $150 will trigger global recession

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yahoo news | BlackRock boss Larry Fink: Oil at $150 will trigger global recession

Larry Fink, the chief executive of BlackRock, warned that if oil prices were to rise to $150 a barrel for several years, the result would be a “stark and steep” global recession. He explained that the outcome hinges on the Middle‑East conflict: a settlement that re‑integrates Iran could push prices back below pre‑war levels, but a continued Iranian threat would keep oil above $100 and possibly near $150, putting “profound implications” on growth, living standards and public finances. Fink urged governments to be pragmatic about their energy mix, using all available sources while aggressively expanding cheaper, clean alternatives to avoid over‑reliance on imports.

When asked about parallels with the 2007‑08 financial crisis, Fink dismissed any similarity, saying the financial system today is far more secure and that the modest fund‑withdrawal issues BlackRock has seen represent only a tiny slice of the overall market. He also rejected the notion of an AI bubble, despite the massive capital flowing into the technology, and stressed that cheap, abundant energy is essential for AI development. According to Fink, the United States, Europe and China must accelerate investments in solar, nuclear and other low‑cost power sources if they wish to remain competitive in the AI race.

Fink’s annual shareholder letter and his BBC interview both highlighted the social impact of AI, warning that its rapid adoption could widen inequality unless the workforce is re‑skilled. He argued that the coming AI boom will create “enormous” demand for trades such as plumbers, electricians, welders and other hands‑on occupations, while some traditional office roles may decline. He called for a re‑balancing of career advice that has long favoured university degrees, suggesting that a strong career in skilled trades should be equally respected and pursued.

Read more: https://www.bbc.com/news/articles/c9wqrdkx8ppo

#blackrock #larryfink #middle-east #ai