Higher energy prices from Iran war will drive world into recession, says Citadel CEO Ken Griffin

• A prolonged closure of the Strait of Hormuz (6-12 months) would result in materially higher global energy prices.
• Higher energy prices would drive the world into a global recession, though the U.S. is expected to be largely shielded due to energy independence.
• The market is currently focused on strong U.S. corporate earnings, and inflation, which has persisted for six years, remains above target, limiting the Fed's ability to cut rates.
• Developing countries like Pakistan and Bangladesh are particularly vulnerable to the economic impact of the war due to lost fuel sources and high replacement costs.
• Griffin commends the President's strategy in curtailing Iran's nuclear ambitions, stating it has set them back by years or even decades.

Citadel CEO Ken Griffin warns that a prolonged closure of the Strait of Hormuz due to the Iran war would lead to materially higher global energy prices, pushing the world into a global recession. He believes the U.S. will be largely shielded due to its energy independence, while developing countries will face the brunt of the economic pain.