U.S. says pipelines will make Strait of Hormuz be irrelevant. Energy experts disagree
The U.S. government is pushing for new oil pipelines to bypass the Strait of Hormuz, aiming to reduce Iran's geopolitical leverage. However, energy experts warn that these infrastructure projects will take years to complete and will not immediately replace the shipping capacity of the strait.
Why it matters
The Strait of Hormuz remains a critical global energy chokepoint, and reliance on it continues to impact oil prices and international security.
AMMAN, Jordan — The U.S. has announced new economic sanctions aimed at loosening Iran's hold on the Strait of Hormuz while counting on Middle East oil producers to quickly build new pipelines bypassing the key shipping route. But energy analysts say replacing shipping capacity through new infrastructure anytime soon is unlikely. The result is expected to be continued higher prices for consumers.
"What we are going to see over the next two years — the strait is going to become irrelevant," Treasury Secretary Scott Bessent told an NBC affiliate earlier this month, adding that 50% to 70% of energy products normally shipped through the Strait of Hormuz would be transported through underground pipelines. "It is going to become just another body of water."
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