world-economy

Pipeline Plans Won't Replace Strait of Hormuz Soon, Experts Say

The U.S. Treasury Department is banking on Middle Eastern oil producers to build pipelines to reduce reliance on the Strait of Hormuz. However, energy analysts say the timeline is unrealistic. Treasury Secretary Scott Bessent claimed the critical waterway would become irrelevant within two years as 50-70% of energy products shift to underground pipelines. The International Energy Agency and oil industry experts disagree, saying the strait will remain essential for years. The UAE expects a $3 billion pipeline expansion to Fujairah to come on line next year, but larger Saudi pipeline projects will require several additional years to complete. Energy analysts warn that continued dependence on the strait likely means sustained elevated fuel prices for consumers in the near term.