The strategic Strait of Hormuz, through which a fifth of the world's oil shipments pass, remains effectively closed despite the fragile ceasefire agreement between the United States and Iran, with the US Navy launching what officials describe as the largest demining operation in decades to clear Iranian naval mines from the critical waterway.

Pentagon sources, speaking on background, told Iran Observator that the operation could take months to complete, with specialized unmanned surface vessels and diver teams working around the clock to neutralize mines that Iranian forces planted in late February as one of the most significant escalations of the conflict. The mining operation sent oil prices to multi-year highs at the time and remains the single greatest threat to global energy markets.

The conditional ceasefire allowed for "monitoring" of the strait, but the US interpretation has been to maintain a naval blockade on vessels seeking to use Iranian ports. Iranian authorities dispute this interpretation, insisting the ceasefire terms only permit "naval presence for monitoring purposes" and that the blockade constitutes a separate violation of international maritime law.

At least 33 ships have been diverted from the strait since the blockade was nominally eased on April 13, according to data from MarineTraffic and independent shipping analysts. The vessels, carrying a mix of crude oil, liquefied natural gas, and container cargo, have been forced to take the 14-day detour around the Cape of Good Hope, adding millions of dollars in fuel costs and insurance premiums to every voyage.

Global shipping insurance rates have tripled since the crisis began, and major oil companies including BP, Shell, and TotalEnergies have rerouted vessels away from Gulf routes entirely. The detour is having measurable effects on global supply chains, with retailers in Europe and Asia reporting delivery delays on a range of goods from electronics to textiles.

"This is an act of war," said a statement from Iran's Islamic Revolutionary Guard Corps, adding that Iran "reserves the right to take decisive action" if the blockade is not lifted. The statement was quickly condemned by the US Central Command, which said the US Navy is operating "within international law" and that "all nations have a right to enforce sanctions under domestic law."

The economic consequences inside Iran are severe. With the strait effectively closed to tanker traffic heading to and from Iranian ports, the country's oil export revenue has collapsed. Fuel rationing has been reinstated for the first time since the 2019 protests, with long queues forming at gas stations across major cities including Tehran, Isfahan, and Mashhad.

The European Union is considering emergency funding for alternative energy routes, including the Trans-Caspian pipeline corridor that would bypass the Gulf entirely. The proposed route would carry Caspian Sea oil and gas through Azerbaijan and Turkey to European markets, though analysts note it would require years of infrastructure investment to become viable at scale.

Global oil prices have responded sharply to the ongoing disruption. Brent crude reached $127 per barrel on Friday before settling at $121.40, while US West Texas Intermediate hit $118.60. Analysts at Goldman Sachs and JPMorgan have both warned that without a resolution, prices could reach $150 per barrel by June.

The strait's closure is also straining relations between the US and key Arab allies, several of whom have privately urged Washington to find a diplomatic off-ramp. Saudi Arabia and the UAE, both of which depend on the strait for their own oil exports, have found themselves caught between their US security commitments and their economic interest in a stable Gulf.