I wonder if this is a possibility that can be explored considering the trouble that can be caused Iran if there is no regime change there which is not hardliner and is pro business if not pro west. What will be the cost of it and i am sure that the two countries would benefit from the transit charges that they will levy.
Why a canal? Why not a less expensive network of pipes to Oman (for Asian distribution)? Then later on to Syria (after Assad is deposed) from Iraq and SA (for EU distribution).
Last edited by asianobserve; 29-12-11 at 11:16 AM.
The venture will not even reach the drawing board. Iran will not stop shipping anywhere. Heck even India will join the US in blowing up their ships.
Let's assume the canal was built. Firstly the canal will be heavily dependent on the notion that Iran will block all passage, which is frankly impossible for a Navy their size.
Secondly, the costs will be extremely high. The Middle Eastern states are rich, but not that rich. Let Dubai save itself first.
Thirdly the costs will be amortized over many years, probably a decade or two. Costs recovery can be achieved only if Iran managed to successfully block shipping for that long and other countries use this facility.
Lastly and most importantly, what if Iran never blocks anything? This would mean the canal would never be used and would be as big a blunder as the Palm islands, except for the fact that the Palm islands cost only a fraction of the cost compared to the "Hormuz" canal we are talking about.
The Americans don't need a canal to ensure supplies. They can plough through any type of opposition.
Better to deal with that unspeakable bully straight out than to look for some expensive engineering solution. Same goes for that other mentally ill country, North Korea.
But then, we have that post-American president in the White House.