Asheville: U.S. Treasury Secretary Scott Bessent stated that the Strait of Hormuz will become "like a worthless piece of water" within two years, as land-based pipelines will soon allow oil to bypass the strategic waterway. Bessent made these comments during a discussion with FOX Business Network host Larry Kudlow at the Group of 20 finance ministers' meetings in Asheville, North Carolina. The remarks come amid heightened tensions between Washington and Tehran, with both nations exchanging strikes in and around the strait.
According to Yonhap News Agency, Bessent emphasized that while the Strait of Hormuz currently serves as a choke point, particularly for many countries reliant on its passage for energy imports, this dependency is set to diminish. The Treasury Secretary highlighted that the construction of pipelines across land will render the strait less critical for oil transportation. This shift is expected to occur within the next two years, potentially altering the geopolitical landscape of the region.
The Middle East war has witnessed Iran effectively blocking the Strait of Hormuz, impacting the shipping of oil, natural gas, and other essential commodities. Such disruptions have contributed to sustained high energy prices, adding pressure on the U.S. administration ahead of the upcoming midterm elections in November. As a response, Gulf countries and other nations that heavily depend on the strait for energy imports are actively seeking ways to decrease their reliance on this critical passage.
In response to recent tensions, U.S. Central Command announced that its forces conducted strikes against Islamic Revolutionary Guard Corps (IRGC) targets in Iran. These actions followed attempted attacks by the IRGC on commercial shipping within the Strait of Hormuz and against U.S. military forces stationed in the Middle East. The situation further escalated with a statement from former President Trump on social media, asserting that the U.S. retaliatory strikes were "large and powerful." Trump warned of potential future strikes should Iran choose to respond, indicating that the U.S. is prepared for further escalation if necessary.