U.S. military escalates Persian Gulf tensions. American forces sunk 16 Iranian minelaying vessels near the Strait of Hormuz as Tehran reportedly began mining the critical waterway. President Trump warned of unprecedented military consequences if mines are not immediately removed. The strait handles roughly 13 million barrels of crude daily, representing 31 percent of global seaborne oil flows. Even limited mining operations could severely disrupt shipping, spike insurance rates, and effectively blockade the Persian Gulf. Oil prices spiked sharply, with WTI crude near $84 and Brent at $88 per barrel. Iran retains over 80 percent of its minelaying capacity and could potentially deploy hundreds of additional mines. This escalation poses significant risks to global energy markets and maritime commerce.
