The CEO of Citadel Securities, a billionaire founder, has issued a warning about the possibility of a global and US recession if a key waterway for oil shipments remains closed for an extended period of time.
In a recent interview with CNBC, Ken Griffin expressed concerns that if Iran continues to block the vital Strait of Hormuz, through which approximately 20% of global oil shipments pass, oil prices could skyrocket to unsustainable levels.
“Unfortunately, if the strait remains closed for an extended period, energy prices worldwide will rise significantly, potentially leading to a global recession.”
Griffin noted that the US, being a net oil exporter, may be less vulnerable to oil price shocks, but emphasized that a global recession would still have negative implications for the US economy.
“A global recession would impact US growth prospects and could even push the country into a recession. However, compared to other nations, the US economy may demonstrate greater resilience.”
Despite these concerns, Griffin observed that the US stock market appears to be focused on strong earnings reports, overlooking geopolitical tensions for the time being.
“The stock market is currently celebrating the impressive earnings performance of American companies. With many sectors reporting record profits, investors are captivated by the success stories of US businesses.”
As of the latest market close, the S&P 500 has reached a record high of 7,337.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Generated Image: Midjourney
