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\u2019s busiest oil routes.<\/p>\n
\u201cThat will be bypassed in two years,\u201d Bessent said Tuesday during a discussion with Larry Kudlow at the G20 financial meetings in Asheville, North Carolina. He went further, predicting that \u201cthe Strait of Hormuz will be like a worthless piece of water\u201d within that timeframe.<\/p>\n
Gulf producers are already spending money in that direction.<\/p>\n
Saudi Arabia pushed roughly 7 million barrels per day<\/a> 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.<\/p>\n The UAE has a more direct workaround. ADNOC plans to build its West-East 1 Pipeline<\/a> and double oil export capacity through Fujairah, which sits outside Hormuz, from 1.8 million bpd to 3.6 million bpd. The project is expected online in 2027.<\/p>\n Iraq is pursuing several exits of its own. A proposed pipeline<\/a> through Syria to the Mediterranean could cost at least $15 billion and take four years to build. Iraqi officials are also discussing repairs to an older Syria pipeline and increased shipments through the Kirkuk-Ceyhan system into Turkey.<\/p>\n