The billionaire founder and CEO of Citadel Securities warns that a global and US recession is on the table if a critical waterway for oil shipments remains closed for an extended period of time.
In a new CNBC interview, Ken Griffin says oil prices will likely soar to unmanageable levels if Iran continues its blockade on the Strait of Hormuz, where about 20% of global oil shipments pass through.
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“Unfortunately, we have yet to reopen the strait, and that’s going to take a period of time that’s just very hard to estimate or to determine. The upshot, if the strait remains closed for another six, nine, 12 months, energy prices around the world will go materially higher. It will push the world into a global recession.”
According to Griffin, the US is largely insulated from oil price shocks because it is a net oil exporter. But he warns that a
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