Citadel CEO Ken Griffin said Tuesday that the global economy is headed toward a recession if the Strait of Hormuz stays shut for much longer.

Citadel CEO Ken Griffin stated Tuesday that a prolonged closure of the Strait of Hormuz would inevitably lead to a global recession. Speaking at the Semafor World Economy conference in Washington, D.C. Griffin projected that if the vital shipping lane remains shut for six to twelve months, a recession is unavoidable.

This warning carries significant weight for investors and traders. The Strait of Hormuz is a critical chokepoint for global oil supply. Any disruption there directly impacts energy prices, inflation, and overall economic stability, creating volatility across financial markets.

Prior to Griffin's remarks, markets were already grappling with persistent inflation, rising interest rates, and geopolitical uncertainties. Concerns about a potential economic slowdown were already present, making any pronouncements from major financial figures regarding recessionary risks particularly impactful.

Investors will now closely monitor developments concerning the Strait of Hormuz and any further commentary from economic leaders. The duration of any potential closure and the global response will be key factors to observe.