Bessent says Strait of Hormuz could become ‘worthless’ within 2 years as US signals more Iran... - Moneycontrol.com

**U.S. Treasury Official Warns the Strait of Hormuz Could Lose Strategic Value Within Two Years**

Washington’s top financial diplomat, Treasury Secretary **Bessent**, told reporters on Tuesday that the Persian Gulf’s iconic waterway—the Strait of Hormuz—may become “a worthless piece of water” as soon as **2028**. The warning came amid a series of U.S. policy moves that signal heightened pressure on Iran, including the prospect of expanded sanctions on Tehran’s oil exports and the acceleration of alternative supply routes. “If the United States continues to push back against Iran’s maritime activities, and if regional partners invest heavily in over‑land infrastructure, the strategic calculus of the Hormuz corridor will shift dramatically,” Bessent said, adding that the Gulf’s “traditional chokepoint” could be bypassed entirely.

The Treasury chief’s remarks echo a broader trend of massive capital flowing into new oil‑pipeline and port projects designed to circumvent the strait. In the aftermath of the 2023‑24 Iran‑U.S. naval skirmishes, investors have pledged **billions of dollars** for projects such as the **East‑West Gas Pipeline** through Azerbaijan and Georgia, the **Turkmenistan‑Iran‑Turkey (TIT) corridor**, and expanded deep‑water terminals in Oman and the United Arab Emirates. Analysts at OilPrice.com note that these initiatives, coupled with the increasing feasibility of LNG shipments from the Caspian region, could erode the strait’s share of global oil transit from roughly **20 %** today to under **5 %** within the next two years.

Regional leaders have responded with mixed signals. While Gulf Cooperation Council (GCC) states acknowledge the need to “future‑proof” their economies—highlighted in a recent Arab News editorial—they also stress that immediate diversification must be paired with diplomatic engagement to avoid destabilizing the global energy market. Experts at War on the Rocks caution that a rapid decline in the strait’s relevance could trigger unintended security vacuums, potentially emboldening non‑state actors. Nevertheless, Bessent’s stark forecast underscores a growing consensus: the era of the Strait of Hormuz as the world’s primary oil conduit may be drawing to a close.