Qatar Energy Minister Rejects U.S. Treasury Secretary's Claim That Strait of Hormuz Will Become 'Worthless' in Two Years

Qatari Energy Minister and QatarEnergy CEO Saad Al-Kaabi publicly contradicted U.S. Treasury Secretary Scott Bessent's assertion that the Strait of Hormuz would lose strategic relevance within two years due to pipeline bypasses. Speaking at the Qatar Economic Forum in New York on September 20, 2026, Al-Kaabi stated, 'I mean, maybe this is his view. I think this is completely wrong' and emphasized that 'Hormuz cannot be obsolete' because it handles diverse trade beyond oil and gas, with 90% of global shipping occurring by sea.

Bessent made his remarks on September 1, 2026, during a fireside chat at the G20 finance ministers' meeting in Asheville, North Carolina, telling Fox Business host Larry Kudlow that pipelines would render the waterway 'like a worthless piece of water' as oil shifts to land routes. This comes amid heightened tensions from the Iran conflict, which has disrupted shipping through the strait—a critical chokepoint for roughly 20-34% of global oil and LNG flows.

Al-Kaabi noted Qatar has no plans for bypass pipelines, citing commercial and technical reasons, and highlighted the strait's role in supporting Qatar's LNG expansion plans. Other Gulf states like Saudi Arabia, the UAE, and Iraq have pursued pipeline projects to diversify flows, but experts and officials stress these alternatives offer only partial mitigation and remain vulnerable to attacks, as seen in recent regional incidents. The debate underscores broader efforts to reduce dependence on the strait while acknowledging its enduring geopolitical and economic importance.