A few weeks ago, Larry Fink expressed hope for a “neutralized Iran”, presenting the conflict as a good investment opportunity.
BlackRock CEO Larry Fink has warned that a global recession is imminent if the US-Israel war over Iran drags on and oil prices remain above $100 a barrel. The stark prediction comes just weeks after Fink described the conflict as a good long-term investment opportunity.
In a wide-ranging interview with the BBC this week, Fink said oil prices could remain above $100 a barrel for years if Iran “Danger remains” Potentially reaching $150 and sparking “Possibly a deep and severe recession.”
He described two scenarios for conflict – one in which Iran “Re-accepted by the international community,” allowing oil to fall below pre-war levels, and another in which tensions remain high, leading to sustained high energy costs. “profound implications” For the global economy.
However, earlier this month, Fink, whose company holds significant stakes in major US defense contractors, spoke in a different tone. During an appearance on Fox News, he long rejected the notion of war and predicted that oil would “Back to where it was and maybe even lower.” Once the conflict is over.
“If Iran is neutralized as a result of the war, and they are allowed to sell oil products into the market again, it is very likely that oil will remain below $50,” He urged investors to get out of volatile markets, saying he has been asking people to do so “buy more” and framing it as a “Good long-term opportunity.”
Meanwhile, major investment firms have already begun to prepare themselves for possible post-war reconstruction deals. Admiral James Stavridis, a former NATO supreme allied commander who is now at investment giant Carlyle, told Semaphore this week that investors are already exploring opportunities in Iran and other conflict zones.
Recalling the reconstruction of South Korea in the mid-20th century after the Korean War, Stavridis said that “It could be (Iran), it could be Cuba, it could be Venezuela, it could be Ukraine. These are investment opportunities that should be taken very seriously.”
The unprovoked US-Israeli attack on Iran has caused chaos in the energy market, limiting the availability of oil and gas and sending Brent crude prices reaching $120 a barrel this month.
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