Story perspectives

Bessent Says Hormuz Could Be Irrelevant in Two Years

8/30/2026

Summary

Story summary

U.S. Treasury Secretary Scott Bessent said pipelines will make the Strait of Hormuz irrelevant within two years.
UAE expects a $3 billion pipeline expansion to Fujairah to begin operating next year.
International Energy Agency analyst Rebecca Schulz warned completed projects may still need over 10 million barrels per day through the strait.
Analyst Robert McNally said the strait remains the most relevant chokepoint and pipelines cannot render it irrelevant.

History

Historical Context

The Trans-Alaska Pipeline System, completed in 1977, rerouted U.S. crude from the North Slope to Pacific ports, diminishing reliance on maritime chokepoints. The Department of the Interior, under Secretary Cecil Andrus, oversaw a $8 billion project that moved roughly 800,000 barrels per day. Today, U.S. Treasury Secretary Scott Bessent and UAE officials cite similar pipeline ambitions to sideline the Strait of Hormuz, echoing the 1970s shift. If pipelines achieve the projected $3 billion expansion and 10 million-barrel daily flow, global oil logistics may permanently reconfigure strategic maritime routes.

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Story summary

U.S. Treasury Secretary Scott Bessent said pipelines will make the Strait of Hormuz irrelevant within two years.
UAE expects a $3 billion pipeline expansion to Fujairah to begin operating next year.
International Energy Agency analyst Rebecca Schulz warned completed projects may still need over 10 million barrels per day through the strait.
Analyst Robert McNally said the strait remains the most relevant chokepoint and pipelines cannot render it irrelevant.

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