Bessent Says Strait of Hormuz Obsolete Within Two Years

September 2, 2026 at 12:30 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

U.S. Treasury Secretary Scott Bessent said Gulf oil producers could bypass the Strait of Hormuz within two years, citing accelerated pipeline investments. He made the remarks Tuesday during a G20 discussion in Asheville, North Carolina. The forecast follows renewed attacks on tankers near the strait.

Key Facts

Bessent said the Strait of Hormuz will be bypassed within two years, calling it 'a worthless piece of water' by then.
Saudi Arabia moved about 7 million barrels per day through its East-West pipeline to the Red Sea during the Hormuz shutdown.
ADNOC plans to double oil export capacity through Fujairah from 1.8 million bpd to 3.6 million bpd by 2027.
A proposed Iraq-Syria pipeline to the Mediterranean could cost at least $15 billion and take four years to build.
Two tankers leaving Hormuz were struck by projectiles on Monday, according to maritime security consultant Marisks.

Bessent's Forecast

Treasury Secretary Scott Bessent said the Strait of Hormuz will be bypassed within two years during a discussion with Larry Kudlow at the G20 financial meetings in Asheville, North Carolina. He predicted the strait will be 'like a worthless piece of water' within that timeframe. The forecast follows Monday's incident in which two tankers attempting to leave Hormuz were struck by projectiles, according to maritime security consultant Marisks.

Gulf Pipeline Expansion

Saudi Arabia pushed roughly 7 million barrels per day through its East-West pipeline to the Red Sea during the Hormuz shutdown, using Yanbu as an alternative export point. The UAE's ADNOC plans to build its West-East 1 Pipeline and double oil export capacity through Fujairah from 1.8 million bpd to 3.6 million bpd, with the project expected online in 2027. Iraq is pursuing a proposed pipeline through Syria to the Mediterranean that could cost at least $15 billion and take four years to build. Kuwait has discussed connecting its oil infrastructure with Saudi Arabia and the UAE, giving its crude access to Fujairah or Red Sea ports. Japan, heavily dependent on Middle Eastern crude, has agreed to participate financially in Gulf pipeline projects.