Ken Griffin has no illusions in his assessment. “If (Strait of Hormuz – ed.) will be closed for the next six to twelve months, the world will fall into recession” – said Griffin, whose words were quoted by CNBC. He emphasized that such a scenario would be inevitable.
According to Griffin, closing the strait would force a sharp shift towards alternative energy sources, such as wind, solar or nuclear energy. However, even the development of these technologies would not alleviate the immediate economic impact.
The head of Citadel also pointed out that The escalation of tensions in the Middle East, especially between the United States and Iran, could bring even more serious consequences if the United States delayed military action, giving Iran time to strengthen its capabilities.
Read also: The conflict in Iran may end in a “global recession”
Griffin also noted that despite the rebound in stock prices observed in recent days and the return to levels prior to the February US attacks on Iran, investors remain cautious. He also emphasized that in the opinion of many analysts the risk of escalation of tensions between Washington and Tehran has not yet been fully factored into market valuationsh.
Oil in focus
The situation in the Strait of Hormuz directly affects global oil prices. Currently, a barrel costs about $100, which is a lower value than at the height of the conflict, but still much higher than before its outbreak, when the price fluctuated below $70.
The greatest pressure is felt by Asian economies, which are particularly exposed to fluctuations in the prices of energy raw materials.
Read also: US economy under pressure. We check what the new indicator showed
The Middle East remains a key hotspot for the global economy, and further developments in the region may determine the direction the global market will take.
