Former Goldman Sachs CEO Rarely Talks About Politics: "Iran War 'Unbearable', Pressure Will Not Last Long"

Former Goldman Sachs CEO predicts that the Iran war will not last too long. Lloyd Blankfein, who led the famous investment bank from 2006 to 2018, said in an interview on Tuesday that the pressure brought by this conflict may be enough to make it end quickly. Blankfein said, "It's unbearable, not good for anyone - not for the U.S., not for our allies - and...the most affected are our enemies." Blankfein is best known for leading Goldman Sachs through the 2008 financial crisis and making it one of the world's top revenue-generating investment banks. As CEO, he, unlike Jamie Dimon of JPMorgan Chase, usually avoids commenting on geopolitical issues. However, during the promotion of his recently published memoir "Street Smarts: Adventures on Wall Street and in the World of Finance," Blankfein candidly spoke about the Iran war and other topics. During the interview, Blankfein also stated that resistance to the war is not limited to the U.S., but is happening worldwide. "Its impact is so severe that all countries around the Gulf and all other countries in the world - this will be a unifying factor for the world," he added. Blankfein's comments come as the Iran conflict escalated over the weekend. The U.S. and Israel intensified airstrikes against Iran, but Israel also launched attacks on Lebanon targeting Iranian-backed Hezbollah militants. Meanwhile, Iran retaliated with strikes on U.S. military bases in Saudi Arabia, the UAE, and Qatar. Additionally, Iran appointed Mojtaba Khamenei as Supreme Leader to succeed his father, Ali Khamenei, who was killed in a U.S. airstrike, seen as a provocative move. On Monday, Trump said in a press conference that the war "will end very soon," but then stated that the U.S. would "take further actions." While Trump's comments boosted the stock market on Tuesday, U.S. Defense Secretary Pete Heggset reiterated at a joint press conference with the Chairman of the Joint Chiefs of Staff that the U.S. will not relent until the enemy is thoroughly and decisively defeated. The Iran war has caused oil prices to soar to $117 per barrel on Monday, but later declined due to Trump's statements. According to data from AAA, as of Tuesday, the average gas price had risen from $2.93 per gallon on February 21 to $3.53 per gallon, a 20.4% increase in 17 days. Blankfein's rare candid comments on the Iran issue contrast with his usual cautious approach as the CEO of one of the world's most prestigious investment banks, Goldman Sachs. During his 12 years as CEO, he experienced several overseas conflicts, including the Iraq War and the 2014 Russian annexation of Crimea, but he rarely publicly commented on such events. However, in a recent interview, Blankfein elaborated on his view that as long as geopolitical events (such as the Iran war) are relatively short-lived, they usually do not have a significant impact on the market. He said that while he does not believe the Iran war will escalate into a long-term conflict, if it does, its impact could be more significant. He said, "I think if they close the Strait of Hormuz, oil prices will remain high, which will exacerbate inflation and cause other types of chaos." The Strait of Hormuz, located in southern Iran, is a crucial passage estimated to transport about 20% of the world's liquefied natural gas and natural gas through the Persian Gulf. Experts say that if this passage is closed, it could trigger a more severe oil crisis than in the 1970s. Back then, gasoline prices skyrocketed by 40%, and long lines at gas stations became the norm. However, Blankfein downplayed the possibility of further escalation in the conflict during the interview, saying, "The region where the war is taking place does not occupy a very important place in the global economy, other than providing a lot of energy."