New Delhi, Nov 8 (KNN) The conflict in Middle East could spark a global recession as already precarious world economy gets hits by the humanitarian crisis, two of Wall Street’s biggest names have cautioned, reported The Guardian.

In view of the global economy, Larry Fink, chief executive of the world’s largest asset manager, BlackRock, said a combination of the Hamas atrocities of 7 October, Israel’s resultant attack on Gaza and Russia’s invasion of Ukraine last year had pushed the world “almost to a whole new future”.

In an interview with the Sunday Times, Fink said: “Geopolitical risk is a major component in shaping all our lives. We are having rising fear throughout the world, and less hope. Rising fear creates a withdrawal from consumption or spending more. So fear creates recessions in the long run, and if we continue to have rising fear, the probability of a European recession grows and the probability of a US recession grows.”

Jamie Dimon, the chair of America’s biggest bank, JP Morgan, also told the same newspaper that the combination of Israel’s war on Hamas and Russia’s invasion of Ukraine – were “quite scary and unpredictable”.

“What’s happening on the geopolitical front right now is the most important thing for the future of the world – freedom, democracy, food, energy, immigration,” he said.

The comments come three weeks after similar apocalyptic remarks from Dimon, who is one of the world’s best known financiers. Last month, he warned that it was “the most dangerous time the world has seen in decades”, with the escalating conflict potentially having “far-reaching impacts” on energy prices, food costs, international trade and diplomatic ties.

(KNN Bureau)