US Treasury Secretary Bessent says Strait of Hormuz could become ‘worthless’ within two years | Today’s news
US Treasury Secretary Scott Bessent said on Tuesday (1 September) that the strategic Strait of Hormuz could lose much of its importance within two years as pipelines provide alternative routes for energy supplies from the Persian Gulf.
“This will be done in two years,” Bessent said on the sidelines of a meeting of global finance chiefs in Asheville, North Carolina. “In two years, the Strait of Hormuz will be like a worthless piece of water.”
Bessent’s comments came amid renewed tensions between the United States and Iran, with the two sides exchanging strikes on Monday. Two oil tankers trying to leave the Strait of Hormuz were also hit by projectiles on Monday, according to maritime security consultant Marisks.
The waterway is one of the world’s most important energy choke points, transporting a significant share of global oil and gas supplies from producers in the Persian Gulf. Iranian control of the strait has become a central issue in the conflict.
The US is increasing economic pressure on Iran
Bessent also outlined other steps Washington is considering to increase economic pressure on Tehran.
The Treasury Department has taken on a more prominent role in the US campaign against Iran in recent weeks. Bessent said Washington is likely to announce sanctions against another bank this week and another next week.
Last week, the US targeted branches of Egypt’s second-largest bank, Banque Misr, in the United Arab Emirates over its business ties with Iran. Bessent said Washington was deliberately avoiding sanctions against the parent bank in Egypt.
“We didn’t sanction them because we didn’t want to go back to the Egyptian parent,” Bessent said.
Bessent added that the U.S. is also exploring whether to target aircraft leasing companies as part of its broader effort to isolate Iran economically.
China remains the key point
China’s role in Iran’s oil trade remains a major concern for Washington. According to Bessent, more than 90% of Iran’s oil exports go to China.
Despite US calls for countries to cut financial and trade ties with Tehran, Washington has not publicly taken similar action against China over its purchases of Iranian oil.
Bessent defended the administration’s approach, saying he had private conversations with Chinese officials about Iran during the G20.
The finance minister also argued that sanctions are more effective when combined with restrictions on Iran’s ability to move goods and generate revenue.
“When everyone says, ‘Well, sanctions don’t work,’ I can tell you that sanctions plus a blockade do,” Bessent said.
“We are burying the head of the Iranian snake,” he added. “The snake does not yet know that it is dead, but it will stop moving when the sun goes down.
Hormuz remains critical
Bessent’s comments come as the latest attacks have renewed concerns about the safety of commercial shipping through the Strait of Hormuz.
The waterway connects the Persian Gulf with the Gulf of Oman and the Arabian Sea and is a key route for the export of oil from Saudi Arabia, Iraq, Kuwait, the UAE and Iran.
Any prolonged disruption could raise global energy prices and add to inflationary pressures. Recent attacks on tankers have already raised concerns among traders and shipping companies about whether the resumption of oil flows through the strait can continue.
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