Strait of Hormuz could be redundant in 5 years, says HSBC CEO

Strait of Hormuz could be redundant in 5 years, says HSBC CEO

HSBC Group Chief Executive Georges Elhedery said on Tuesday that the Strait of Hormuz could become redundant within the next five years due to investment in alternative logistics routes in the Gulf. The Iran 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. Elhedery's comments come as geopolitical tensions in the region continue to disrupt traditional shipping patterns. The banking chief suggested that new infrastructure investments are already underway to mitigate the impact of the Iran war on global energy supply chains. The potential shift could fundamentally reshape global energy trade routes.