Will the Strait of Hormuz become irrelevant in five years?

Growing investment in alternative logistics routes in the Persian Gulf could make the Strait of Hormuz, which has come under attack, “irrelevant” within five years.

TodayPress TV reports that the statement was made by Georges Elhedery, CEO of HSBC, one of Britain’s largest financial conglomerates.

“We see that this region is capable of recovering and continuing to develop. Significant investment will be required to achieve this. Of course, we hope the conflict will be resolved. However, the Strait of Hormuz will probably be irrelevant in five years,” he said.

Elhedery added that the conflict in the region was pushing investors to direct their resources towards developing energy pipelines that would bypass the Strait of Hormuz and connect to Persian Gulf ports.

According to the HSBC chief executive, these changes will help the region overcome the consequences of the conflict in the Middle East.

Aysel Matlab