Iran's key leverage at risk as Trump names Hormuz alternative
Photo: US President Donald Trump (Getty Images)
The dependence of global markets on the Strait of Hormuz may decrease thanks to new oil supply routes through the Middle East, US President Donald Trump says during a briefing in the Oval Office at the White House.
According to Trump, new pipelines and overland routes in the Middle East could gradually reduce global markets' dependence on the Strait of Hormuz. In his view, the strategic importance of this waterway is no longer what it used to be.
"A lot of alternatives are being made to the Hormuz Strait. The Hormuz Strait is not what it used to be," Trump says.
He notes that new pipelines are being built in the region, which should provide additional capacity for transporting oil. In addition, according to the US President, significant volumes of oil are already being transported by truck through Syria.
Trump links the development of alternative routes to Iran's stance. He states that if Tehran does not change its approach, it may be left with the Strait of Hormuz, whose importance to global markets will be significantly reduced.
"Iran is going to end up, if they don't get smart, really smart, which I don't know if they can. I don't know if they're able to do that, but they're going to end up with a harmless Strait that's not very necessary anymore," Trump notes.
During the briefing, the US President also comments on the hostilities between the US and Iran. He states that he does not consider them a full-scale war.
"I call it a military conflict because it's small potatoes for us. It's not a big thing," Trump says.
According to Axios, the US struck more than 100 targets in Iran, which helped mitigate the threat to shipping in the Strait of Hormuz.
Meanwhile, global oil prices rose to over $95 per barrel amid the escalating conflict between the US and Iran.
