Bessent says alternative routes could reduce Hormuz importance within two years

Treasury Secretary Scott Bessent says the Strait of Hormuz could become far less strategically important within two years if alternative energy routes are developed around the chokepoint.
He also said the U.S. has held private discussions with China and is exploring potential cooperation with Beijing on Iran, while additional banking sanctions are expected in the coming weeks.
Bessent noted that Iran may hold the world's third-largest energy resources, underscoring the scale of the country's importance to global energy markets.
If alternative export routes materially reduce dependence on Hormuz, the long-term geopolitical risk premium embedded in $WTI could decline.