Most state-of-the-art electric space propulsion systems such as gridded and Hall effect thrusters use xenon as the propellant gas. However, xenon is very rare, expensive to produce, and used in a number of competing industrial applications. Alternatives to xenon are currently being investigated, and iodine has emerged as a potential candidate. Its lower cost and larger availability, its solid state at standard temperature and pressure, its low vapour pressure and its low ionization potential make it an attractive option. In this work, we compare the performances of a gridded ion thruster operating separately with iodine and xenon, under otherwise identical conditions using a global model. The thruster discharge properties such as neutral, ion, and electron densities and electron temperature are calculated, as well as the thruster performance parameters such as thrust, specific impulse, and system efficiencies. For similar operating conditions, representative of realistic thrusters, the model predicts similar thrust levels and performances for both iodine and xenon. The thruster efficiency is however slightly higher for iodine compared with xenon, due to its lower ionization potential. This demonstrates that iodine could be a viable alternative propellant for gridded plasma thrusters.