Commodities
Home›Commodities›Energy›Bessent says Strait of Hormuz could be bypassed within…
Bessent says Strait of Hormuz could be bypassed within two years
The Treasury secretary tied the timeline to alternative export routes, including Saudi Arabia’s East-West pipeline use and ADNOC’s planned West-East 1 pipeline, expected online in 2027.
Treasury Secretary Scott Bessent said Gulf oil producers could bypass the Strait of Hormuz within two years, arguing the chokepoint would lose practical value on that horizon. Speaking Tuesday at the G20 financial meetings in Asheville, North Carolina, Bessent also predicted the Strait of Hormuz would be effectively worthless within the same timeframe.
According to OilPrice, the comments come amid efforts to reroute crude after the Iran war disrupted one of the world’s busiest oil routes. 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.
OilPrice also cited additional workarounds and buildouts. The UAE’s ADNOC plans to build its West-East 1 Pipeline and double export capacity through Fujairah, which lies outside Hormuz, from 1.8 million bpd to 3.6 million bpd, with the project expected to be online in 2027. Iraq, meanwhile, is pursuing options including a proposed pipeline through Syria to the Mediterranean that could cost at least $15 billion and take four years to build, along with discussions about repairs to an older Syria pipeline and increased shipping.
Latest closeWTI crude $90.79 ▲5.9%