Ken Griffin, CEO of Citadel LLC speaks on Squawk on the Avenue on the World Financial Discussion board in Davos, Switzerland on Jan. 21, 2026.
Oscar Molina | CNBC
Citadel CEO Ken Griffin mentioned Tuesday that the worldwide financial system is headed towards a recession if the Strait of Hormuz stays shut for for much longer.
“Let’s assume [the Strait is] shut down for the following six to 12 months — the world’s going to finish up in a recession,” Griffin mentioned on stage on the Semafor World Economic system convention in Washington, DC. “There is not any solution to keep away from that.”
Consequently, the world goes to see an enormous shift towards various gas sources, together with wind, photo voltaic and nuclear, he added. To make certain, the hedge fund chief thinks the results of the conflict would have been worse if the U.S. delayed any strikes till Iran’s army capabilities had grown.
Shares have managed to rebound again to the place they had been earlier than the U.S. first attacked Iran in February, however the optimistic sentiment amongst buyers is contingent on the period of the conflict within the Center East. Many count on dangers of an escalation in tensions between the 2 international locations are under no circumstances priced into the market.
International economies particularly in Asia stay susceptible to spikes in oil costs, which stay elevated at round $100 a barrel. That is off their highs in the course of the battle, however stay far above the place they had been earlier than the conflict, at slightly below $70 a barrel.