Larry Fink, CEO and Chairman of BlackRock, shared his thoughts on the U.S. conflict with Iran, asserting that it won’t have a lasting economic impact, despite rising oil prices in the U.S.
“Do you think this war will drag on? I don’t,” Fink said during an interview on Fox News with Bret Baier. “Will oil prices come down to what they were? Perhaps they might even drop lower.”
Fink appeared on “Special Report” to talk about the effects of the Iran conflict and artificial intelligence on the economy, as well as the effectiveness of initiatives from so-called “woke” companies.
Discussing market fluctuations, he noted that BlackRock, the largest asset manager globally, isn’t overly concerned about temporary shifts in energy prices.
“Uncertainty creates more uncertainty, which can lead to fear,” he explained regarding the ongoing conflict. “That said, with $14.5 trillion in assets under management, most of our focus is long-term. Short-term volatility doesn’t phase me much.”
These comments come against a backdrop of instability in energy markets stemming from the Middle East situation.
Since the U.S. launched an attack on Iran on February 28, gasoline prices have surged by 20%, pushing the national average to $3.58 per gallon, a significant rise from $2.94 reported prior to the attack.
Despite this spike, Fink believes oil prices could actually decrease once the war concludes and Iran is reintegrated into the global oil market.
“If the war leads to Iran being neutralized and they resume selling oil, it’s likely we could see prices drop below $50,” he stated.
Fink cautioned investors against making hasty decisions during the ongoing U.S.-led war, suggesting that volatility might present opportunities. “I’ve seen many people exit the market, which I think is the wrong move,” he remarked. “I even received quite a few emails asking for advice, and I said, ‘Now is a good time to buy more.’ This could be beneficial in the long run.”
Fink also addressed BlackRock’s initiatives on diversity, equity, and inclusion, as well as environmental and governance issues, pondering whether they might be considered unsuccessful.
“The pendulum is always in motion,” he remarked. “Would you say it swung too far five years ago? Yes.” Last February, BlackRock began scaling back its DEI efforts, citing changes in the U.S. legal environment affecting such initiatives.
He reflected that he feels “more realistic” now than five years back, suggesting society is shifting to a more grounded perspective.
Baier pressed further, asking if BlackRock had inadvertently leaned companies toward a more liberal agenda.
“That was never our goal, as our role is to act as fiduciaries for everyone who invests with us,” Fink replied.
