Griffin warns of global recession if Hormuz Strait stays closed

Investing.com -- Citadel CEO Ken Griffin warned Tuesday that a prolonged closure of the Strait of Hormuz could push the world into recession within six to 12 months.

Speaking at the Semafor World Economy Forum, Griffin described the current situation as "a very, very treacherous moment for the world economy." He said the key issue for world financial markets is the resumption of energy product flows from the Middle East without tolls or harassment.

"We have a classic energy price shock unfolding across the world as we speak," Griffin said.

The billionaire investor called the war in Iran one of the greatest geopolitical events of our lifetime. He noted that while the U.S. military has effectively destroyed every Iranian target that can be struck from the sky, the Iranian military remains very much intact and has demonstrated its resiliency.

Griffin said the United States should have worked more aggressively with Europeans to create a united front for peace in the Middle East.

On domestic issues, Griffin said affordability is an issue that haunts the American household. He added that changes coming from artificial intelligence leave everybody anxious, creating a very stressful period for the American worker.

Griffin also said Federal Reserve independence serves the long-run interests of the American people.

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