Chilling ‘death valley’ scenario traps millions of barrels of oil as Iran just begun laying mines in Strait of Hormuz, US intelligence says

US intelligence reports confirm that Iran has begun laying mines in the Strait of Hormuz, the world’s most vital energy chokepoint, as per CNN. This is a truly concerning development for global energy security, especially when you consider that about one-fifth of all crude oil passes through this narrow waterway.

While the mining isn’t extensive just yet, with only a few dozen laid in recent days, the potential for escalation is huge. Iran still holds onto a whopping 80% to 90% of its small boats and mine layers, meaning its forces could easily deploy hundreds more mines in the strait. The Islamic Revolutionary Guard Corps (IRGC), which effectively controls the strait alongside Iran’s traditional navy, is capable of deploying what’s been described as a “gauntlet” of dispersed mine-laying craft, boats packed with explosives, and shore-based missile batteries.

President Trump quickly addressed the situation on Truth Social, “if Iran has put out any mines in the Hormuz Strait, and we have no reports of them doing so, we want them removed, IMMEDIATELY!” He went on to warn that if mines were indeed placed and not removed, Iran would face consequences “at a level never before seen.” However, the president also offered an olive branch, saying that if Tehran removes “what may have been placed, it will be a giant step in the right direction!”

This isn’t the first time we’ve heard warnings about the Strait of Hormuz

Following President Trump’s post, Secretary of Defense Pete Hegseth posted on X, confirming that at the president’s direction, US Central Command “has been eliminating inactive mine-laying vessels in the Strait of Hormuz—wiping them out with ruthless precision. We will not allow terrorists to hold the Strait of Hormuz hostage.” Later on Tuesday, US Central Command confirmed in its own social media post that the military had destroyed multiple Iranian naval ships, including 16 minelayers, near the Strait of Hormuz.

The IRGC previously stated that any ship passing through the channel would be attacked, and the waterway has effectively been closed since the start of the war. Given the immense risks involved in transiting, some have described the state of the strait as a “death valley.”

The closure has massive implications for global energy. Nearly 15 million barrels per day (bpd) of crude production, plus another 4.5 million bpd of refined fuels, are now essentially stranded in the Gulf. Producers like Iraq and Kuwait have no alternative routes for shipping their oil through Hormuz, which is a big problem. The G7 group of large economies has even hinted it might release more oil to try and offset these potential shortages.

Naturally, this uncertainty surrounding oil movement through the waterway caused severe volatility in the crude oil market on Tuesday. The price per barrel was swinging wildly, fluctuating between more than $90 and less than $80 in a series of dramatic peaks and valleys.

Despite these immediate actions and concerns, President Trump had previously expressed confidence during a Monday press conference. He said that “the Strait of Hormuz is going to remain safe. We have a lot of Navy ships there. We have the best equipment in the world inspecting for mines.” US officials confirmed on Tuesday that the US Navy had not escorted any vessels through the strait, although President Trump mentioned on Monday that his administration was looking at options to do so.