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Bessent Says Strait of Hormuz Obsolete Within Two Years
oilprice.com · September 1, 2026 · Week 2026-36
Summary
The US Treasury Secretary predicts that accelerated pipeline buildouts by Gulf producers could make the Strait of Hormuz bypassable for oil exports within two years. This strategic shift, driven by conflict with Iran and Houthi attacks, involves major projects by Saudi Arabia (East-West pipeline), the UAE (Fujairah expansion), and Iraq (Mediterranean routes) to create permanent alternative export capacity.
Strategic Implication
Signals a permanent de-risking of Gulf crude exports from the Hormuz chokepoint, potentially reducing Iran's geopolitical leverage and fundamentally altering global tanker routes.