The claim that U.S. Treasury Secretary Scott Bessent said the Strait of Hormuz will be bypassed within two years and become “worthless” is factually accurate. Bessent made this statement on September 1, 2026, in Asheville, North Carolina, during the G20 finance ministers’ meeting.
Speaking during a fireside chat with Larry Kudlow, Bessent stated, “That will be bypassed in two years. In two years, the Strait of Hormuz will be like a worthless piece of water.” He further elaborated that oil would instead move through pipelines across land, effectively rendering the strategic waterway obsolete for global energy transit within that timeframe.
Bessent framed his remarks around the current geopolitical tensions, arguing that while Iran is attempting to use the Strait as a choke point, it is “not a choke point for the U.S.” He predicted that the development of alternative pipeline routes would significantly reduce global dependence on the maritime passage. This projection aligns with his previous estimate from last month, where he suggested that up to 70 percent of the energy typically passing through the Strait would eventually be transported via overland pipelines instead.
Bessent’s comments came amid a sharp escalation in US-Iran hostilities. On the same day as his speech, tit-for-tat strikes occurred between the two nations, and two oil tankers were struck by projectiles while attempting to exit the Strait of Hormuz. These events follow a broader pattern of confrontation: a US-Iran framework deal was signed in June 2026 through Pakistani and Qatari mediation, but the US subsequently began a two-week bombing campaign in July and reimposed a naval blockade after disagreements over navigation rights in the strait. In addition to his remarks on the waterway, Bessent outlined plans to expand sanctions on financial institutions and entities doing business with Iran, indicating that additional banks are likely to be sanctioned in the coming weeks as part of this economic pressure campaign.
This statement has been confirmed by multiple independent news outlets, including Anadolu Agency, Bloomberg, The National, News18, The Edge Malaysia, and Livemint, all of which reported directly on Bessent’s public comments in Asheville.
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