Gulf countries are accelerating efforts to develop alternative energy transport routes as regional conflict highlights the risks of relying heavily on the Strait of Hormuz. HSBC chief executive Georges Elhedery said on October 20 that new pipelines, ports and logistics systems could make the waterway far less important within five years.
The strait has long been one of the world’s most important routes for oil and gas shipments. A large share of global energy trade passes through the narrow passage between Iran and Oman. When security risks rise, shipping companies and energy producers can face higher insurance costs, delays and uncertainty over whether cargoes will reach their destinations safely.
The conflict has encouraged Gulf governments and businesses to consider how they could move more energy through other routes. Pipelines can carry oil across land to ports outside the strait, while investment in port facilities may give exporters more options for reaching international customers. These projects require substantial funding, planning and cooperation between countries.
Alternative routes cannot be built overnight. Pipelines must connect production areas with suitable terminals, and ports need the capacity to handle large volumes of cargo. Governments must also consider environmental effects, construction costs and the security of infrastructure that may become strategically important.
Elhedery said the Middle East, North Africa and Turkey offered significant investment opportunities. HSBC has identified a large pipeline of infrastructure projects across the wider region, reflecting efforts to improve transport, energy supply and economic resilience. Such investment could support construction and create opportunities for companies that provide engineering, finance and logistics services.
However, the economic outlook remains uncertain. Conflict has affected confidence and is expected to weigh on parts of the regional economy. Energy prices, shipping costs and government spending decisions will influence how quickly projects move from plans to construction.
For international energy markets, additional routes could reduce the consequences of a disruption in one location. Yet they would not remove all risks. Pipelines and ports can face technical problems, political disputes or security threats of their own.
The discussion highlights a broader lesson for energy producers: efficiency must be balanced with resilience. A route that is cheap and convenient during stable periods may become a weakness when conflict threatens shipping. Gulf states are now weighing the cost of building alternatives against the potential economic damage of relying on a single major passage.
Whether the Strait of Hormuz becomes less central will depend on investment, political cooperation and the pace of construction. For now, the search for alternative routes shows how regional insecurity is changing long-term energy planning.
