US Treasury Secretary: Strait of Hormuz to lose its importance within two years as oil is transported via land pipelines

US Treasury Secretary Scott Bessent affirmed on Tuesday that the Strait of Hormuz will become a “strategically insignificant and valueless” waterway within two years, as oil transport shifts to land-based pipelines.

Speaking to journalists while in Asheville, North Carolina, to preside over the second and final day of the G20 summit, Bessent said, “The Iranians are attempting to use the Strait of Hormuz as a leverage card. While it poses no pressure on the United States, it does exert pressure on many other countries.”

He added that “this situation will change within two years, as the Strait of Hormuz will become merely a waterway of negligible value, with oil being transported via land pipelines.”

Bessent emphasized that securing supply chains is vital not only for oil shipments but also for the transport of semiconductors, critical minerals, advanced technologies, and raw materials used in the production of many pharmaceuticals.

He stressed the need to mitigate the risks of supply chain bottlenecks around the world.