Billionaire investor Ken Griffin, CEO of Citadel, issued a stark warning Tuesday, indicating the world faces a significant risk of global recession should the Strait of Hormuz remain closed for an extended period. Speaking at the Semafor World Economy Forum, Griffin described the current situation as a “very, very treacherous moment for the world economy.” He emphasised that from a macroeconomic perspective, the crucial factor is the “resumption of the continued flow of energy products from the Middle East without tolls, without harassment.” Griffin stated if the strait “remains shut down…for the next six to 12 months, the world’s going to end up in a recession.”
Griffin, a prominent Republican supporter, offered a nuanced perspective on former President Donald Trump’s decision to strike Iran six weeks prior. He noted many were surprised by the Iranian military’s resilience despite concerted American air strikes, observing it “is still very much intact.” While stating, “We have effectively destroyed every single target you can strike from the sky,” he also contended that consequences would have been “far more dire” had the U.S. delayed an attack for several years, citing advancements in Iran’s missile technology. “If it had happened later, it could actually be much worse,” he remarked.
Griffin concluded Trump made a “very difficult decision about what to do right here, right now. The history has been forever changed.” A White House spokesperson, responding to Griffin, asserted the administration had “met or exceeded all of our objectives.” The spokesperson indicated Iran was reportedly desperate for a deal following the Trump administration’s “highly effective naval blockade” of the strait. White House spokeswoman Olivia Wales affirmed the president is “rightfully securing the Strait of Hormuz to ensure freedom of navigation for all ships, ending Iranian extortion, and applying pressure on Iran’s crumbling economy.”
