HSBC: In five years, no one will need the Strait of Hormuz

The blockade of the Strait of Hormuz will lead to the fact that the countries of the Persian Gulf will build alternative logistics routes and in five years the route may be unnecessary. This was stated by the director of the global financial conglomerate HSBC Georges Elhederi.

The Iranian crisis forces the countries of the Persian Gulf to direct resources to the development of pipeline systems for alternative transportation of energy carriers and they will allow the region to cope with the negative consequences of the conflict.

"We see that this region is able to recover and continue to grow. This will require significant investments. Of course, we hope for a settlement of the conflict... but The Strait of Hormuz may probably become unnecessary in five years," Georges Elhederi said at a forum in Dubai, Reuters reports.

HSBC has published a report on which the countries of the Middle East, North Africa and Turkey offer projects totaling $ 872 billion.

"This is part of a larger portfolio of infrastructure projects (planned, but not yet distributed) worth $ 1.4 trillion," Reuters writes.

The Iranian war forced the Persian Gulf countries to actively use alternative supply routes and expand them. For example, Saudi Arabia and the UAE plan to add capacity to oil pipelines that run from the Persian Gulf to the Red Sea and the Gulf of Oman. Iraq, in turn, is considering the option of transporting oil through Syria. In the case of gas from Qatar, obviously, the situation is more complicated. An alternative to LNG may be a gas pipeline to The Mediterranean or the Red Sea, but the costs may be too high.