BRITAIN and Europe could face fuel shortages within days as the Middle East crisis threatens to trigger a “stark and steep” global recession.
The boss of the world’s largest fund manager has warned that oil prices hitting $150 a barrel would devastate the economy.
BlackRock chief Larry Fink told the BBC that if Iran remains a threat and prices stay elevated, the world faces “profound implications.”
He warned that years of oil stays high it would act as a “regressive tax” hitting the poorest families the hardest.
Shell boss Wael Sawan also warned that a global supply squeeze is already forcing parts of Asia to cut energy use.
He told The Telegraph that the “ripple effect” is moving west and will reach Europe by April.
This could force governments to pull emergency levers to curb demand for the first time since 2022.
One-fifth of the world’s oil and gas is currently trapped in the Gulf after Iran closed the Strait of Hormuz.
UK military sources say mine-hunting drones are being prepared to reopen the vital trade route.
US President Donald Trump is also reportedly considering a ground invasion of key Iranian islands to break the deadlock.
The International Energy Agency has already called on countries to reduce consumption by encouraging more home working and lower road speed limits.
In Asia, some governments have already moved to four-day working weeks and restricted air conditioning use.
Sawan said European leaders may soon have to consider similar measures to manage storage and stocks.
British drivers are already feeling the pinch at the pumps.
Petrol prices have surged by 15.7p a litre since late February, taking the average unleaded price to 148.55p, while diesel has rocketed by 31.5p to 173.83p.
Households are also facing a sharp rise in energy costs this summer.
Analysts warn Ofgem’s price cap could climb to £1,973 a year in July, according to Cornwall Insight.
That would add £332 to the average dual-fuel bill from the £1,641 level expected in April, piling yet more pressure on already stretched family budgets.
Despite the warnings, Fink insisted the world is not facing a repeat of the 2008 financial crisis.
He said banks and institutions are more secure now than they were during the last crash.
The Government said the UK has a “diverse and resilient” energy supply and is monitoring the situation closely.
However, analysts warn that American fuel cargoes are already being diverted to Asia as buyers there offer higher prices.
Industry experts fear fuel shortages remain a “worst-case scenario” if the conflict with Iran drags into the summer.
