Ray Dalio, the billionaire founder of Bridgewater Associates, issued a stark warning on Monday stating that the current war between the US, Israel and Iran is a historical turning point.
Dalio argues that the conflict’s outcome hinges entirely on the Strait of Hormuz, a vital waterway for a fifth of the world’s daily oil supply.
In a detailed post on X, Dalio wrote that “it all comes down to who controls the Strait of Hormuz.”
He cautioned that if Iran keeps the power to block or negotiate passage, the US will be seen as having lost, regardless of military strikes.
Dalio compared a potential American failure there to Britain’s in the Suez Canal Crisis which signaled the end of the British Empire.
He noted that in such moments “people and money instinctively flow toward the winner” potentially ending the American-led global order.
Dalio believes the world is watching to see if the US can maintain its role as the dominant empire. He warned that if the US cannot secure the strait, it will prove that “the US lacks the capacity to resolve this issue” causing a massive shift in global alliances and the financial system.
