Energy markets are bracing for potential oil price spikes as Middle East tensions with Iran threaten to escalate further. Analysts are now modeling worst-case scenarios where crude could surge past $200 per barrel, creating conditions reminiscent of past oil crises that triggered global recessions.

A new Bloomberg podcast episode explores these possibilities, featuring energy expert Javier Blas discussing how sustained conflict could disrupt major shipping routes and production facilities. The conversation examines historical precedents where geopolitical shocks sent prices soaring, from the 1973 oil embargo to the 1990 Gulf War.

The economic implications are severe. Transportation costs would skyrocket, manufacturing would face higher input costs, and consumer spending would be squeezed as energy bills consume larger portions of household budgets. Central banks would face difficult choices between fighting inflation and supporting growth.