'Strait of Hormuz insecurity could be a long-term condition', warns expert - EWN

The Strait of Hormuz could take far longer than five years to bypass, an international relations expert has warned.

This comes after Reuters reported that HSBC CEO Georges Elhedery told the bank's Future Forum in Dubai that the strategic shipping route could become redundant within five years.

However, international relations expert Timothy Walker said replacing the vital trade corridor would require massive investment in pipelines, ports, roads, and rail infrastructure.

He warned that investors could be left with stranded assets if regional stability returned before those projects were completed.

"There's a lot to take into account, not just oil," Walker said.

"There's things like liquid natural gas, Qatar being an absolutely critical provider of that for countries in Asia and all around the world. That kind of infrastructure is very hard to replicate and very expensive as well."

Walker said the scale of the investment required meant any alternative to the Strait of Hormuz would take far longer than five years to develop.

He added that ongoing instability in the region could continue to disrupt global shipping and energy trade for years to come.