The United States military has deployed two guided-missile destroyers to the Strait of Hormuz to begin a minesweeping operation, a significant escalation in the fragile standoff with Iran that immediately sent crude oil prices higher. The USS Frank E. Petersen and USS Michael Murphy passed through the vital waterway on April 11 to clear underwater mines allegedly laid by Iran’s Islamic Revolutionary Guard Corps (IRGC), according to a statement from US Central Command.
The move threatens to unravel a tenuous two-week ceasefire agreement between Washington and Tehran, under which Iran had agreed to reopen the strait that handles nearly 25 percent of global energy trade. “With the Strait of Hormuz being a critical route for global oil flows, uncertainty continues to fuel volatility,” said Kaveri More, a commodity analyst at Choice Broking, noting the market's high sensitivity to developments in the region. Lingering ambiguity over the truce, which Iran claims was breached by continued Israeli proxy attacks, has kept markets on edge.
Oil prices reacted sharply to the increased risk of supply disruptions. Brent crude, the international benchmark, rose over 3 percent to $97.71 per barrel, while West Texas Intermediate (WTI) climbed to $97.40. The operation adds another layer of uncertainty, with Iran previously issuing guidance for alternate shipping routes due to the risk of sea mines. This has already driven up insurance premiums for vessels transiting the strait, a cost that ultimately feeds into higher energy prices.
The escalation highlights Iran’s strategic leverage over the global energy trade and raises the stakes for the world economy. Analysts warn that if the conflict is not resolved and the strait remains restricted beyond May, crude prices could reach the psychologically significant level of $150 per barrel. Such a spike would risk triggering broader inflationary pressures and slowing global economic growth, a scenario reminiscent of previous Middle East conflicts that led to sustained periods of high energy prices and economic instability.
This article is for informational purposes only and does not constitute investment advice.
