At the World Economy Summit in Washington DC, Harvey Schwartz said investors underestimate geopolitical shocks, noting that the Silicon Valley Bank collapse caused a sell-off seven times more severe than Russia’s 2022 Ukraine invasion and warning that such risks are hard to price and hedge.

Panelists including Ken Griffin, George Walker and Steven Rattner debated the effects of a Strait of Hormuz shutdown on global oil markets, suggesting prices could hit $100 per barrel through mid-summer and depleting strategic reserves over six to 12 months may spark recessionary pressures.