US Treasury Secretary Scott Bessent said Tuesday that the Strait of Hormuz could lose its strategic importance within two years, as oil-producing countries increasingly develop alternative routes to transport crude without relying on the vital waterway.
Speaking during an interview in Asheville, North Carolina, Bessent said the United States and other countries need to reduce their dependence on potential global chokepoints. He argued that Iran has attempted to use the Strait of Hormuz as a strategic pressure point, although he said the waterway does not pose the same level of risk to the US as it does to many other nations.
According to Bessent, growing investment in land-based oil pipelines could eventually allow countries to bypass the strait. He predicted that within two years, oil would increasingly be transported across land rather than through the strategic waterway.
Bessent also described Iran’s economic situation as increasingly difficult, claiming that Tehran was facing severe inflation, limited access to foreign currency and growing pressure on its financial system.
Regarding further measures against Iran, he said Washington was preparing to announce additional banking sanctions, with further restrictions potentially following the next week. He said the US was coordinating with its allies and intended to place significant economic pressure on the Iranian government.
The Treasury chief also said Washington planned to target assets allegedly obtained illegally by the Iranian regime, with the possibility of transferring those assets to the Iranian people, victims of terrorism or families of US military personnel.
Bessent said the US would continue efforts to prevent Iran from developing nuclear weapons, maintain highly enriched uranium capabilities, support militant proxy networks and threaten Gulf security. He also issued a strong warning that countries would have to decide whether they supported Washington’s position.
Relations between Iran and the United States have remained tense since the conflict began with US strikes on Iran in late February. A framework agreement was later reached in June through mediation by Pakistan and Qatar.
The US subsequently launched a two-week bombing campaign in July and reinstated a naval blockade following disagreements over navigation through the Strait of Hormuz.
NEWS DESK
PRESS UPDATE