US Treasury Secretary Scott Bessent stated on Tuesday that the Strait of Hormuz could become redundant within two years, as emerging alternative oil routes are expected to circumvent this critical waterway, according to Anadolu.
“We must de-risk globally. Iran is attempting to leverage the Strait of Hormuz as a strategic choke point,” Bessent remarked during an interview in Asheville, North Carolina.
“While this is not a choke point for the United States, it poses a significant challenge for numerous other nations,” he noted during sidelines meetings with G20 finance ministers.
Bessent asserted that the vital waterway “will soon be bypassed, rendering it less relevant.”
“Within two years, the Strait of Hormuz may become inconsequential, akin to a mere stretch of water,” he commented.
“Oil transportation will shift to overland pipelines,” he elaborated.
Bessent highlighted that Tehran faces severe economic constraints, including limited access to foreign currency, rampant inflation, and the necessity to print money at the central bank to fund government operations and military pay.
Regarding additional sanctions, Bessent announced: “We anticipate announcing a bank sanction this week, followed by another next week.”
He emphasized ongoing coordination with allies, stating: “We have received substantial global support. Our policy is zero tolerance, and we aim to economically isolate the regime.”
“We will target assets illicitly acquired by the regime from the Iranian people, with intentions to redistribute these funds to the citizens, terrorism victims, or families of American service members,” he declared.
“Our objectives include preventing nuclear weapons development, securing highly enriched uranium, countering terrorist proxies, and ensuring Gulf security. We are clear: you are either with us or against us,” he added.
Relations between Tehran and Washington have remained tense since hostilities commenced with strikes on Iran in late February.
A tentative agreement was reached in June, facilitated by Pakistani and Qatari mediation.
The United States initiated a two-week bombing campaign in July and reinstated a naval blockade following disputes over strait navigation.
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