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Strait of Hormuz could become irrelevant in two years, says US Treasury Secretary
US Treasury Secretary Scott Bessent stated that the Strait of Hormuz could become strategically irrelevant within two years as new overland pipeline routes are developed to bypass the waterway. Speaking at a G20 gathering in Asheville, North Carolina, Bessent suggested that these alternatives would diminish Iran's ability to use the strait as a geopolitical chokehold.
The remarks follow a seven-week US naval blockade of Iranian oil shipments, which has significantly impacted Tehran's economy. Data indicates that no Iranian crude has successfully reached China, its primary remaining customer, since the blockade began in mid-July. Iranian oil loading dropped to between 220,000 and 255,000 barrels per day in August, down from approximately 740,000 barrels per day in July.
Volatility in the region remains high; maritime security consultant Marisks reported that two tankers were struck by projectiles while attempting to exit the strait on Monday. While US officials emphasize the shift toward land-based transport, energy market experts expressed skepticism regarding the speed of this transition. Analysts from the International Energy Agency noted that even with new infrastructure, approximately 10 million barrels per day may still require transit through the strait.
Entities
China · International Energy Agency · Iran · Scott Bessent · Strait of Hormuz · United States Department of the Treasury
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] US crude oil production reached a record average of 13.6 million barrels per day last year. alhurra.com
- [○ 1 SOURCE] Iran loaded between 220,000 and 255,000 barrels per day of crude oil and condensate in August. www.bedigest.com
- [● 3 SOURCES] Two oil tankers were struck by projectiles while attempting to leave the Strait of Hormuz on Monday. www.bedigest.com · www.aljazeera.net · www.tz.de
- [● 4 SOURCES] The Strait of Hormuz will become strategically irrelevant within two years due to alternative pipeline routes. www.bedigest.com · www.aljazeera.net · alhurra.com · www.tz.de
- [○ 1 SOURCE] Even after major projects are completed, more than 10 million barrels per day may still need to pass through Hormuz. www.aljazeera.net
- [○ 1 SOURCE] No Iranian crude cargoes have successfully transited the strait to China since the US blockade took effect in mid-July. www.bedigest.com