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.

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.

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.

BlackRock is considered to be one of the world’s largest asset management company. Larry Fink is the Chairman and chief executive officer of BlackRock, a multinational investment company.  He is one of the founding members of the organisation which overlooks investment management, risk management, and advisory services.