Strait of Hormuz Situation Escalates: Trump Warns Iran, U.S. Navy Sinks 16 Minesweepers Triggering Shockwaves in Global Energy Markets

On March 11, CNBC reported that the U.S. Central Command announced that U.S. forces sank multiple Iranian vessels near the Strait of Hormuz on Tuesday, including 16 mine warfare ships. Earlier reports indicated that Tehran was attempting to lay mines in this critical global energy transit route. President Trump later warned on social media platform Truth Social that if Iran mines the strait and does not remove them immediately, it will face “unprecedented military consequences.”

Trump also stated that 10 of the ships sunk were decommissioned mine warfare vessels and emphasized that U.S. military actions may continue. According to CNN, Iran has recently deployed mines in the Strait of Hormuz, but on a relatively limited scale, laying only dozens of mines in recent days. However, sources indicate that Iran still retains over 80% of its small vessels and mine warfare ships, theoretically capable of deploying hundreds of mines in the waterway.

The Strait of Hormuz, located between Oman and Iran, is one of the world’s most vital energy transit routes. Energy consultancy Kpler estimates that about 13 million barrels of oil pass through the strait daily by 2025, accounting for approximately 31% of global seaborne crude oil trade. As tensions in the Middle East escalate, international oil prices briefly approached $120 per barrel before retreating. Currently, U.S. West Texas Intermediate (WTI) crude is around $84.9 per barrel, and Brent crude is approximately $88.9 per barrel.

CBS News reported that Iran may be preparing to expand its mine-laying operations, with each small vessel capable of carrying two to three mines. External estimates suggest Iran’s stockpile of mines could range from 2,000 to 6,000. The Robert Strauss Center for International Security and Law noted that limited mine deployment can serve as a deterrent to shipping and pressure vessels to navigate more controllable routes.

Meanwhile, maritime war risk insurance premiums have recently surged, with several insurers suspending coverage for routes through the Persian Gulf. Trump previously stated that the U.S. would provide political risk insurance for maritime trade passing through the Gulf and may escort oil tankers through the Strait of Hormuz with the U.S. Navy. However, Reuters reports that the U.S. Navy is currently refusing some escort requests due to ongoing high attack risks.