Two oil tankers catch fire in Strait of Hormuz

Despite plans to construct pipelines, analysts believe that the Strait of Hormuz will remain vital for container shipping and natural gas transportation, according to Reuters. US Treasury Secretary Scott Bessent suggested that the strait would become "worthless" within two years once new pipelines divert oil to global markets, estimating that 70% of previous energy flow through the waterway would be redirected to pipelines.

Gulf countries and Iraq are investing heavily in pipeline projects, yet the strait is predicted to remain strategically important due to the difficulty in replicating LNG and container shipping alternatives. Only a few ships pass through the strait daily, compared to over 100 before the war, which began six months ago. The UAE's Habshan–Fujairah pipeline and Iraq's Kirkuk to Baniyas pipeline are among the new projects, but these still account for only a fraction of the strait's regular oil flow.

Container traffic alternatives exist but are less efficient and challenging to scale. LNG exports through the strait remain challenging to replace, with Qatar's Ras Laffan LNG facilities situated inside the Gulf. Despite Bessent's comments being interpreted as a negotiation tactic, analysts doubt that the strait will lose its significance in the near future, as alternative routes may still face vulnerabilities from drone and missile attacks.