Ships under fire in Strait of Hormuz while US hammers Iranian minelayers

Tensions in the Strait of Hormuz are escalating as ships come under attack and the U.S. moves to counter suspected Iranian mine-laying operations, raising fears of further disruption to global shipping and energy flows.

The narrow channel between Iran and Oman carries roughly a fifth of the world’s oil supply, making it one of the most critical energy chokepoints in global trade. Europe relies on shipments passing through the strait for fuel imports and refining — including diesel and jet fuel — and disruptions have already pushed energy prices higher since the U.S.-Israel war on Iran began.

The escalation comes amid U.S. media reports that Iran may be preparing to deploy naval mines in the area, prompting Washington to target suspected mine-laying vessels.

The warning has also reached European shipowners. Greece’s shipping ministry circulated an internal advisory to shipping companies warning that Iran may already have mined the Strait of Hormuz or could do so imminently.

“According to information from U.S. intelligence agencies reported by international and domestic media, there are reports that Iran has either already mined or may mine the Strait of Hormuz,” the advisory said. “Given that the possible mining of the area poses a very serious threat to the safety of navigation, shipping companies and captains of Greek ships … should incorporate the above into their risk assessment and monitor developments.”

U.S. Central Command said in a social media post late Tuesday that it had struck 16 Iranian vessels believed to be involved in laying mines near the strait. It remains unclear whether any mines were successfully deployed.

U.S. President Donald Trump also warned Tehran of severe consequences if mining operations continue.

“If Iran has put out any mines in the Hormuz Strait … we want them removed immediately,” Trump said Tuesday in a post on Truth Social, adding that U.S. forces would “permanently eliminate” any boat attempting to lay mines.

But even if mines are never deployed, the threat alone is enough to keep vessels away from the waterway.

“It almost doesn’t matter [whether the strait is mined or not],” said Matthew Wright, principal freight analyst at Kpler. From a shipowner’s perspective, the risk is enough.

“Iran does not need to attack a ship every day to stop shipping,” he added. “All they have to do is show they can — and they have.”

On Wednesday, at least three new incidents involving commercial vessels were also reported, according to the United Kingdom Maritime Trade Operations (UKMTO).

Donald Trump warned Tehran of severe consequences if mining operations continue. | Kay Nietfeld/picture alliance via Getty Images

A cargo vessel was hit by an unknown projectile in the Strait of Hormuz, triggering a fire on board and forcing the crew to evacuate, UKMTO said in an incident warning issued early Wednesday. Another container vessel earlier reported sustaining damage from a suspected projectile.

The escalating confrontation is deepening the crisis already affecting shipping in the area. Maritime traffic through the Strait of Hormuz has collapsed since the war began.

Normally 15 million to 18 million barrels of crude oil pass through the strait each day, roughly a fifth of global oil consumption. But tanker traffic has fallen sharply as shipping companies suspend voyages and insurers raise war-risk premiums.

“For Europe, diesel and jet fuel are likely to become major issues in the next couple of months,” Wright said. “There is simply no alternative route for much of that supply.”

Major container carriers including Maersk, MSC, Hapag-Lloyd and CMA CGM have already halted transits through the strait, rerouting vessels or sending them to safe anchorages.

Insurance has also become another major constraint. War-risk coverage was briefly withdrawn and is now returning only at sharply higher costs, with some hull and cargo premiums rising 200 to 300 percent.

“In the 15 years I’ve covered oil and shipping markets, this is probably the biggest event,” he said in an interview earlier this month, comparing the shock to the early months of the Covid-19 pandemic and the start of the Russia-Ukraine war.

Even an immediate ceasefire would not quickly restore shipping through the strait, Wright said.

“If the U.S. announced today that the war was over, that could almost make things worse,” he noted. “How do you define the end of the war? If the U.S. simply pulls out or says military action is complete, that wouldn’t solve anything. Iran would still be capable of firing into the Strait of Hormuz, and that uncertainty would add even more risk to the market.”

Nektaria Stamouli contributed to this report.