Hormuz could be ‘redundant’ in five years: HSBC
DUBAI: Investment in alternative logistics routes in the Gulf to mitigate the impact of the Iran war could make the Strait of Hormuz “redundant” in the next five years, HSBC Group Chief Executive Georges Elhedery said on Tuesday. The conflict has highlighted the world’s heavy reliance on the strategic waterway, through which a fifth of global oil and liquefied natural gas trade previously passed.…
DUBAI — HSBC Group's Chief Executive, Georges Elhedery, warned on Tuesday that the Strait of Hormuz could become "redundant" within the next five years as a result of the ongoing Iran war. The conflict has exposed the world's heavy reliance on the strategic waterway, which previously facilitated one-fifth of global oil and liquefied natural gas trade.
To mitigate the impact of the conflict, Gulf nations are investing in alternative logistics routes and energy pipelines, according to Elhedery. The HSBC CEO made these remarks during the HSBC Future Forum event in Dubai. He expressed hope for a resolution to the conflict but added that Hormuz may become unnecessary in five years' time.
A recent HSBC survey of over 1,600 business leaders and approximately 820 global institutional investors found that the Gulf region remains an attractive investment hub despite the current turmoil.
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