Billionaire Ken Griffin Warns of Recession if Strait of Hormuz Is Closed
Kenneth C. Griffin, the billionaire hedge fund founder and one of the world’s most prominent art collectors, warned Tuesday that the global economy faces a recession if the Strait of Hormuz remains closed through the end of this year. “Let’s assume it’s shut down for the next six to 12 months,” Griffin said at the Semafor World Economy summit in Washington, D.C. “The world’s going to end up in a recession. There’s no way to avoid that.” Griffin, the CEO of Citadel, said that closure of the Strait, a daily passageway for roughly 20 percent of global oil consumption, has created energy shocks that have already raised the risk of a downturn. He added that a prolonged closure would force central bankers into difficult decisions over whether to treat inflationary spikes as transitory or to raise rates in order to combat inflation. He called the current moment “very, very treacherous” for the global economy. Related Articles The remarks carry particular weight in the art world, where Griffin is among the most active and deep-pocketed buyers …
