U.S. Treasury Secretary Forecasts Strait of Hormuz Irrelevance, Energy Experts Disagree

Why it matters locally: While New Mexico is not directly reliant on the Strait of Hormuz for its energy supply, global oil market stability and prices, which could be affected by changes in the Strait's relevance, have indirect impacts on the state's energy sector and consumer costs.

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WASHINGTON – U.S. Treasury Secretary Scott Bessent has projected that oil pipelines will significantly reduce the importance of the Strait of Hormuz within two years. He believes these infrastructure developments will make the vital shipping lane irrelevant. Energy experts, however, express skepticism regarding Bessent's timeline and assessment. They indicate that such a rapid shift in the strait's strategic role is unlikely. The Strait of Hormuz serves as a critical maritime chokepoint for global oil shipments. Numerous countries rely on the strait for the transit of crude oil and liquefied natural gas.