economy
Global recession is inevitable if Strait of Hormuz stays shut, says Citadel's Ken Griffin
A prolonged blockage of the Strait of Hormuz for the next six to 12 months will mean an unavoidable recession, the billionaire investor said.
TL;DR
- Citadel CEO Ken Griffin predicts an unavoidable global recession if the Strait of Hormuz is closed for 6-12 months.
- A prolonged closure will necessitate a significant shift to alternative fuel sources, including wind, solar, and nuclear.
- Investor sentiment is contingent on the duration of the conflict, with risks of escalation potentially not priced into the market.
- Global economies, particularly in Asia, are vulnerable to elevated oil prices, which remain well above pre-war levels.