US Treasury Secretary Predicts Hormuz Strait Irrelevance via Pipelines, Experts Disagree

Why it matters locally: While New Mexico is not a direct participant in Middle Eastern oil transit, global oil prices are influenced by stability in key shipping lanes like the Strait of Hormuz, which can indirectly affect the state's economy and consumer costs.

---

WASHINGTON – Treasury Secretary Scott Bessent stated that oil pipelines would make the Strait of Hormuz irrelevant within two years. Energy experts have indicated this outcome is unlikely to materialize. Bessent outlined a two-year timeline for pipelines to diminish the strait's significance in global oil transit. He highlighted the capacity of existing and planned pipeline infrastructure to reroute oil flows. Energy analysts disagree with Bessent's assessment. They point to the strait's strategic location and the volume of oil that currently transits its waters daily. Experts emphasize the logistical challenges and costs associated with rerouting such substantial quantities of oil exclusively through pipelines. These experts also cite the geopolitical complexities surrounding pipeline development and security in the region. They suggest that despite pipeline expansion, the Strait of Hormuz will maintain its role as a critical choke point for oil shipments.