The Strait of Hormuz may be rendered "redundant" as a transport route for energy resources within the next five years according to a statement from HSBC Group Chief Executive Georges Elhedery on Tuesday.
The Strait of Hormuz is a critical shipping route connecting the Persian Gulf with the Gulf of Oman. Before the conflict escalated in late February 2026, the passage carried approximately one-fifth of global oil and liquefied natural gas supplies, making it vital to international energy markets.
A general from Iran's Revolutionary Guard Corps' (IRGC) Navy reiterated that the Strait of Hormuz is closed that they are prohibiting passage of ships through the route on Oct. 17, 2026, due to its conflict with the US.
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The conflict has prompted Gulf nations to redirect resources towards developing energy pipeline networks linked to ports, investments that Georges Elhedery said would help the region mitigate the economic impact of the war.
"We do see this region being able to recover and then continue growing. It will mean a lot of investment," he said during the HSBC Future Forum event which took place Dubai.
"Of course, we do wish and hope to see a resolution to the conflict ... But Hormuz, probably in five years' time, may become redundant," the executive added.
The Middle East, North Africa and Turkey region currently has $872 billion worth of individual projects on offer, forming part of a broader $1.4 trillion infrastructure pipeline that remains planned but yet to be awarded, according to an HSBC report citing data from Dubai-based industry intelligence platform MEED.
An HSBC survey of more than 1,600 business leaders and about 820 global institutional investors also found that investors continue to view the Gulf region as an attractive investment destination.
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The World Bank last week projected the Middle East, North Africa and Pakistan region's economy would contract 1.3% in 2026 as the war weighs on growth. The lender expects a strong, though uneven, recovery in 2027 following the downturn.
Elhedery is among the global financiers expected to attend Saudi Arabia's flagship investment conference. Organisers postponed the event until 2027 on Monday after attacks on Riyadh by Iran-backed Houthis based in Yemen.
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