hormuz will be obsolete in 2 years says …

Treasury Secretary Scott Bessent says Gulf oil producers could bypass the Strait of Hormuz within two years, putting a remarkably short timetable on a pipeline buildout that has accelerated since the Iran war disrupted one of the world’s busiest oil routes.

“That will be bypassed in two years,” Bessent said Tuesday during a discussion with Larry Kudlow at the G20 financial meetings in Asheville, North Carolina. He went further, predicting that “the Strait of Hormuz will be like a worthless piece of water” within that timeframe.

Gulf producers are already spending money in that direction.

Saudi Arabia pushed roughly 7 million barrels per day through its East-West pipeline to the Red Sea during the Hormuz shutdown, using Yanbu as an alternative export point. The route provided Saudi crude with a way around Hormuz, although tanker traffic through the Red Sea later faced its own problems from Houthi attacks near Bab el-Mandeb.

OilPrice.com