US Treasury Chief Scott Bessent Predicts Strait of Hormuz Will Be 'Worthless' as New Pipelines Bypass Choke Point

US Treasury Secretary Scott Bessent stated on Tuesday that the Strait of Hormuz will soon lose its value as an oil transit route due to the development of alternative export pipelines. Speaking at the G20 finance ministers meeting in North Carolina, the Treasury chief also announced that the US plans to take action against banks connected to the Iranian regime within the next two weeks, aiming to cripple the regime's economy as part of the Trump administration's strategy.

Mr Bessent pointed out that Iran has attempted to weaponize the Strait of Hormuz as a strategic choke point amid ongoing conflict with the US. While acknowledging it poses challenges for international allies, he emphasized that the waterway will soon be rendered obsolete. "In two years, the Strait of Hormuz will be a worthless piece of water. The oil will be going on pipelines across the land," he stated, reinforcing previous estimates that up to 70 per cent of energy normally routed through the waterway will soon shift to overland pipelines.

Maritime traffic through the strait plummeted following the US and Israel military campaign against Iran initiated on February 28, and while volumes have slightly recovered recently, they remain significantly depressed. During discussions in Asheville, Mr Bessent sought international backing to isolate Iran's economy, highlighting upcoming expansions in secondary sanctions and potential restrictions on the dollar system for entities dealing with the regime. He expressed confidence in securing strong cooperation from international partners, including the EU, the ECB, the UK, and the UAE.