Bessent says Strait of Hormuz could become "worthless" within two years

  • Scott Bessent projected that pipelines and rising U.S. output would bypass the Strait of Hormuz.
  • U.S. oil production has risen by 1.6 million to 2.2 million barrels per day.
  • Bessent outlined new Iran sanctions and said further financial crackdowns would begin within two weeks.

Treasury Secretary Scott Bessent said at the G20 that the Strait of Hormuz could become a "worthless piece of water" within two years as higher U.S. oil production and overland pipelines reduce dependence on the Persian Gulf chokepoint. He said U.S. output has increased by 1.6 million to 2.2 million barrels per day since President Trump took office. Bessent also outlined a "zero tolerance" campaign against Iran, including potential sanctions on global airline leasing companies supporting Iranian aviation, action against offshore accounts in the British Virgin Islands holding Iranian assets, and a further crackdown on financial institutions over the next two weeks. He said seized funds could be returned to the Iranian people or used to compensate victims of terror. Bessent cited support from the European Union, the ECB, the UK, the UAE and Bahrain, while saying Washington was holding private, backchannel discussions with Beijing. He also described an Argentina-led Western Hemisphere economic renaissance as a "generational opportunity" and highlighted the recent strength of the U.S. bond market.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.