The price of a barrel of Brent crude oil fell almost six percent on Wednesday after reports that the United States has sent a plan to Iran to end the war. This is reported by the news agency AFP.
At around 01:30 on Wednesday night, the price of oil had fallen by 5.92 percent to $98.30 - just over 630 kroner. The price of a barrel of Brent crude oil is the global benchmark for oil prices.
Neither Iran nor the United States has yet confirmed that the United States had sent a 15-point plan to Iran through Pakistan. Two unnamed officials with knowledge of the diplomatic process told The New York Times on Tuesday evening that the plan had been delivered.
According to the news agency Reuters, the report has also affected the stock market. The benchmark index S&P 500, which is the 500 largest listed companies in the United States, rose 0.9 percent in Asian trading on Wednesday morning local time.
The reason for the increase in oil prices is, among other things, that Iran has effectively closed the Strait of Hormuz, which is a bottleneck for a fifth of all the world's oil.
Head of large private equity fund fears recession
The head of the private equity fund BlackRock, Larry Fink, says in an interview with the BBC that if the price of a barrel of crude oil hits $150, it will trigger a global recession. If the conflict does not end peacefully, the world is looking at "years of oil prices above $100, closer to $150 per barrel, which has widespread consequences for the economy," he says.
The result will be "probably a hard and steep recession," says Larry Fink.
BlackRock is a financial giant that manages assets worth $14,000 billion and is one of the largest investors in many of the world's largest companies. The record for the highest oil price is $146.08. That was during the financial crisis in July 2008.
However, Larry Fink sees no risk that history will repeat itself, as financial institutions today are more robust than they were during the financial crisis.
- I see no similarities at all. Zero, he tells the BBC.
Earlier in March, the oil price was up to $119 per barrel. It was the first time since Russia's invasion of Ukraine that the price was above $100. In 2022, the price reached almost $140.
/ritzau/
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
