Citadel's Ken Griffin says Iran war threatens global recession

By Pete Schroeder

WASHINGTON, April 14 (Reuters) - ‌Billionaire investor Ken ​Griffin ​warned on Tuesday that the world could face a global recession if the Strait of Hormuz remains closed for a prolonged period.

"This really ‌is a very, very treacherous moment for the world economy," the Citadel ⁠CEO said at the Semafor World Economy Forum. "From a macroeconomic perspective around the world ... the key ‌criteria is the resumption of the ‌continued flow of energy products from the Middle East without tolls, without harassment.

"If it remains shut down for all intents and purposes...for the next six to ​12 months, the world's going to end up in a recession," added Griffin.

Griffin, who has backed Republican politicians and said he voted for President Donald Trump ⁠in 2024, struck a nuanced tone on Trump's decision to strike Iran six weeks ago. He said many ​were surprised by the resilience of the Iranian military in the face of concerted American air strikes, noting that the Iranian military "is ​still very much intact."

"We have effectively destroyed every ‌single target you can strike from the sky," he said.

But he added that the consequences would have been "far more dire" had the ⁠U.S. waited several years to attack Iran, noting developments in that country's missile technology that could strike Israel.

"Despite what we're seeing today, if it had happened later, it could actually ⁠be much worse," he said, adding that Trump made a "very difficult decision about what to do right ​here, right now. The history has been forever changed."

When asked about Griffin's comments, a White House spokesperson said the administration had "met or exceeded all of our objectives" in the war, and ‌Iran was desperate to make a deal following the Trump administration's "highly effective naval blockade" of the strait.

"The president is rightfully securing ‌the Strait of Hormuz to ensure freedom of navigation for all ships traveling to non-Iranian ⁠ports, ending the Iranian extortion of ‌the world, and applying ​pressure on Iran’s crumbling economy," said White House spokeswoman Olivia Wales.

(Reporting by Pete Schroeder in Washington; Editing by Chizu Nomiyama, Hugh Lawson and ‌Daniel Wallis)

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