Citadel CEO Ken Griffin warned that the global economy would slide into recession if the Strait of Hormuz remains shut for an extended period, CNBC reports.

Speaking at the Semafor World Economy conference in Washington, D.C. on Tuesday, Griffin said a closure lasting six to 12 months would make a downturn unavoidable. “There’s no way to avoid that,” he said.

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Griffin added that a prolonged disruption would likely accelerate a global shift toward alternative energy sources, including wind, solar and nuclear.

He also noted the economic fallout could have been worse if the U.S. had delayed military action until Iran’s capabilities had further expanded.

Stocks have rebounded to levels seen before the initial U.S. strikes earlier this year, but investor optimism remains closely tied to how long the Middle East conflict persists. Many market participants, Griffin said, may not be fully pricing in the risk of escalation.

Oil prices, currently around $100 per barrel, continue to weigh on global economies — particularly in Asia. While below peak levels reached during the conflict, prices remain significantly higher than pre-war levels, which were just under $70.