Bessent warns Strait of Hormuz will be “worthless” within 2 years

Treasury Secretary Scott Bessent warned that the Strait of Hormuz will become economically irrelevant within two years. At the G20, he announced plans to economically pressure Iran through an aggressive campaign. This strategy hinges on the growing U.S. energy production, which he projects will rapidly render the strategic waterway obsolete.

Bessent highlighted that since President Trump's administration, U.S. oil production has surged 1.6 to 2.2 million barrels per day. Within 24 months, he anticipates that overland pipelines will completely bypass the Strait of Hormuz, rendering it a "worthless expanse of water." With this infrastructure shift, Iran would lose its primary asymmetric military threat.

The Secretary unveiled a "zero tolerance" policy, aiming for a total economic blockade on Tehran. This includes sanctioning global airline leasing companies that facilitate Iranian aviation operations. The Treasury has already identified offshore accounts in the British Virgin Islands holding Iranian assets. Bessent suggested that seized funds could be redirected to the Iranian people or used for terror victim compensation.

The administration's blockade strategy is gaining international support, with backing from the European Union, the ECB, the UK, the UAE, and Bahrain. Washington is also in discussions with China to secure its cooperation. Apart from the Middle East, Bessent pointed out the Western Hemisphere's economic renaissance led by Argentina as a "generational opportunity."