Strait of Hormuz may become less critical to global energy trade, Trump says

U.S. President Donald Trump said the Strait of Hormuz will play a less important role in global trade in the future.

According to him, the situation in the Middle East is forcing energy buyers to seek alternative routes.

"At the same time, a large number of pipelines are being built. A record number, in fact. It seems to me that the Strait of Hormuz will become less important than it has been in the past," the U.S. president said during a White House YouTube broadcast. He added that the United States has also increased its exports of hydrocarbons as an alternative.

In July, Bloomberg, citing sources, reported that the United States was negotiating the construction of a pipeline that would allow oil to be transported from Iraq to Syria, bypassing the Strait of Hormuz.

The Strait of Hormuz is a narrow maritime passage between the Persian Gulf and the Gulf of Oman, holding significant strategic importance as approximately 20% of global oil supplies and around 25% of liquefied natural gas (LNG) exports pass through it. Essentially, it serves as an energy artery for countries in Asia, Europe, and even the United States.

The strait separates Iran from Oman, and in some areas, the width of the shipping channel is only two miles on each side. Given its critical role in global energy supply chains, ensuring the safety and security of this vital waterway is paramount for international trade and economic stability.