U.S. Treasury Secretary Scott Bessent stated that the Strait of Hormuz will become a "worthless piece of water" within two years as oil transportation increasingly shifts to land-based pipelines, bypassing the critical maritime route.
The potential obsolescence of the Strait of Hormuz due to new pipeline infrastructure could significantly alter global energy trade dynamics and geopolitical leverage in the Middle East.
U.S. Treasury Secretary Scott Bessent predicted that the Strait of Hormuz will become a "worthless piece of water" within two years, as oil transportation increasingly shifts to land-based pipelines. Bessent made these remarks during a fireside chat with FOX Business Network host Larry Kudlow at the Group of 20 finance ministers' meetings in Asheville, North Carolina.
His comments come amid heightened tensions in the strait, with Washington and Tehran exchanging strikes. Bessent noted that while Iran attempts to use the Strait of Hormuz as a choke point, this leverage will diminish as oil bypasses the waterway via pipelines. Disruptions in the strait have previously contributed to high energy prices, particularly impacting other nations relying on it for energy imports.
Meanwhile, U.S. Central Command announced that its forces struck targets belonging to Iran's Islamic Revolutionary Guard Corps (IRGC) following recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and U.S. troops in the Middle East. Trump commented on these strikes, calling them "large and powerful" and a retaliation for Iran's alleged failed attempt to place sea mines in the strait.