U.S. Treasury Secretary Scott Bessent has confirmed that the Strait of Hormuz will not return to its pre-conflict state, marking a dramatic shift in U.S. policy toward Iran. In an interview with Arizona-based NBC affiliate 12News, Bessent acknowledged that the strategic waterway, through which nearly 20 percent of the world’s seaborne oil passes, is effectively irreparable due to Iran’s actions. His remarks represent the first public admission by a high-ranking member of President Donald Trump’s administration that the situation in the region is permanent. Bessent suggested that the Strait of Hormuz will soon lose its significance as a critical energy corridor. According to him, more than half of the energy currently moving through the strait will transition to underground pipelines within the next two years. This transformation, he said, signals a fundamental change in global energy logistics, one that will reshape international trade patterns and geopolitical dynamics. The implications of Bessent’s comments extend far beyond the Middle East. For countries reliant on maritime oil transport, such as the United Kingdom, the outlook appears grim. The UK government had previously assumed that the Strait of Hormuz would eventually reopen, allowing for the resumption of stable oil prices and predictable supply chains. However, Bessent’s statement removes that possibility, forcing policymakers to reassess long-term economic strategies. Chancellor John Healey faces a particularly difficult challenge ahead. With the upcoming Budget speech scheduled for 28 October, the assumption that Hormuz would open in the near future is no longer viable. Economic forecasting firms had warned earlier this year that prolonged closure of the strait could push the UK into recession. Recent projections suggest that if the strait remains closed through the end of 2023, inflation could surge to 6.4 percent by Christmas. If the closure continues past mid-2027, the UK economy might contract by 0.2 percent, a scenario that would severely undermine efforts to stimulate growth. The impact of these developments is not limited to the UK alone. European allies, many of whom depend heavily on oil imports through the Strait of Hormuz, are likely to face similar economic pressures. The ripple effects of the ongoing conflict could lead to higher fuel prices, increased transportation costs, and potential disruptions in food and agricultural supplies, all of which contribute to broader economic instability. Meanwhile, the U.S. military’s ability to maintain pressure on Iran is coming under scrutiny. Reports indicate that American weapons stockpiles are depleting faster than anticipated, raising concerns about the sustainability of current operations. Both China and Russia appear to be capitalizing on this uncertainty, positioning themselves as alternative power centers in the region. In addition to the physical closure of the Strait of Hormuz, Bessent hinted at further economic measures against Iran. Speaking on Newsmax’s Rob Schmitt Tonight program, he stated that the U.S. is prepared to implement sanctions that have “never been seen” in the history of economic isolation. These measures, he claimed, will include intensified financial restrictions and continued blockades in the Strait of Hormuz, preventing goods from entering or exiting Iranian ports. Such statements underscore the deepening divide between the U.S. and Iran, with little indication of a resolution in sight. As the situation evolves, the focus shifts to how global economies will adapt to the new reality of reduced maritime oil transit and heightened geopolitical tensions. The coming months will test the resilience of international markets and the effectiveness of diplomatic efforts aimed at stabilizing the region.
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