Ken Griffin, CEO of Citadel, said that if the Strait of Hormuz remains closed for the remainder of the year, or for six to 12 months longer, we will face a global recession. I’m relatively sure everyone knows that.
20% of global trade passes through the Strait of Hormuz.
Bankers would be left with tough choices, such as raising rates to anchor inflation. It would also destroy the demand for goods and services.
The administration is aware of that, no doubt.
This really is a very, very treacherous moment for the world economy as we navigate the consequences of trying to secure a lasting peace in the Middle East,” Griffin said.
Griffin said Trump’s actions are good and bad.
The government pulled off the ouster of Venezuela’s leader with “incredible grace,” he said. Griffin believes that gave the administration too much confidence to change the regime.
“We did a very poor job of messaging to the world” over the US campaign in Iran, Griffin said. “The moral imperative for what has happened in Iran over the course of the last 50 days … we did not position this issue with the world through the right talking points, and nor did we bring our allies on board with us. And I think that was a mistake.”
It would have been better if he could have worked something out with the allies, but they probably wouldn’t have agreed then, either. They won’t help now, and they likely wouldn’t have helped anyway.
Iran is also suffering, and while Russia and China are providing it with support, they also seem on the surface to want a peaceful resolution. Iran’s President Pezeshkian wants to meet again to see if they can reach an agreement.
The Death Cult regime is still in place. On April 7, Pezeshkian complained that the IRGC is making it very difficult to reach a deal. The Iranian administration appears split.