Bessent says Strait of Hormuz would be 'worthless piece of water' as oil pipelines bypass it

U.S. Treasury Secretary Scott Bessent forecasted that the Strait of Hormuz will become an "unimportant body of water" within two years, as oil shipments will transition to land-based pipelines, thereby bypassing the strategic waterway. The Secretary made these comments during a fireside chat with FOX Business Network host Larry Kudlow at the Group of 20 finance ministers meetings in Asheville, North Carolina.

The ongoing conflict between Washington and Tehran has escalated tensions in the Strait of Hormuz, which has been a strategic choke point for many countries. Bessent noted that while the United States is not currently affected by the Strait of Hormuz as a choke point, other nations are indeed impacted. The Secretary further elaborated that in two years, the Strait of Hormuz will essentially be "worthless" as oil will be transported via pipelines across the land.

During the Middle East war, Iran effectively blocked the Strait of Hormuz, a vital shipping route for oil, natural gas, fertilizer, and other commodities, thereby contributing to the high energy prices and putting pressure on the United States.