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

U.S. Treasury Secretary Scott Bessent warned on Tuesday that the Strait of Hormuz will become an "unworthless piece of water" within the next two years, as oil shipments will bypass the strategic waterway through land-based pipelines. The treasury secretary made these remarks during a fireside chat with FOX Business Network host Larry Kudlow at the G20 finance ministers meetings in Asheville, North Carolina.

Tensions between Washington and Tehran have escalated in recent months, with both nations exchanging strikes that have put the future of the strait at risk. While Bessent acknowledged that the United States is not a choke point for the Strait of Hormuz, he emphasized that many other countries are indeed reliant on the route. The secretary added that in two years, the Strait of Hormuz will lose its significance, as oil will be transported through land-based pipelines.

During the Middle East conflict, Iran has effectively blocked the crucial shipping route, causing disruptions that have contributed to high energy prices and putting pressure on Washington.