US forecasts reduced Strait of Hormuz relevance
U.S. Treasury Secretary Scott Bessent expects the Strait of Hormuz to lose a significant part of its strategic importance over the next two years, as reliance on pipelines and land-based energy transportation routes increases alongside maritime pathways. He pointed out that between 50% and 70% of the energy flows currently passing through the strait could be transported via alternative methods in the future, reducing the need to depend on the waterway, which is one of the most vital arteries for global oil and gas trade. This comes amid Gulf efforts to expand oil and gas export capacities through ports and pipelines outside the Strait of Hormuz, aiming to enhance supply security and reduce dependence on this vital corridor, which is threatened by Iran's policies and regional tensions.
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