Billionaire Citadel Securities CEO Ken Griffin warns a global and US recession is likely if the Strait of Hormuz remains closed for an extended period. In a CNBC interview, Griffin said oil prices could surge to unmanageable levels if Iran's blockade continues, noting that about 20% of global oil shipments pass through the strait.
"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," Griffin said.
While the US is largely insulated as a net oil exporter, Griffin cautioned that a global recession would ultimately hurt US growth prospects. "We will have one of the greatest stories of resilience," he added.
Despite these risks, Griffin noted the stock market remains focused on strong corporate earnings, with the S&P 500 closing at an all-time high of 7,337.