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Market Chatter: Pentagon Sees 6-Month Hormuz Mine Cleanup, Oil Prices May Stay Elevated

-- A Pentagon estimate flags a potential six-month timeline to clear Strait of Hormuz mines, signaling prolonged oil price pressure, The Washington Post said Wednesday, citing three officials familiar with the discussion.

US defense officials told lawmakers the cleanup could take half a year and likely will not begin until the conflict with Iran ends, delaying the full restoration of shipping flows, the report said, citing sources.

Officials shared the timeline during a classified House Armed Services Committee briefing on Tuesday, where both Democrats and Republicans voiced frustration over the prolonged disruption outlook, the report said.

The assessment suggests gasoline and oil prices may stay elevated well beyond any peace agreement, the report said.

Political risks also rise as higher fuel costs approach the November midterm elections, adding pressure on President Donald Trump, whose war decision has drawn weak public support, according to polls cited.

Iran may have emplaced at least 20 mines in the Strait of Hormuz using GPS-guided floating devices and small boats, complicating US detection and raising risks for clearance operations, the sources said.

Iran began deploying mines in March during ongoing US and Israeli strikes, prompting Trump to warn Tehran of severe consequences if it failed to remove them, the report said.

The Pentagon has since targeted Iranian vessels suspected of laying mines, with Defense Secretary Pete Hegseth saying US forces struck them with precision to secure the waterway, according to the report.

Iran's deputy foreign minister denied placing mines, while separate reporting indicated Tehran may struggle to track all deployed devices, raising further uncertainty, according to the report.

The latest assessment followed Trump's claim that Iran, with help from the US, had removed or was removing all mines, a statement aimed at calming markets and signaling progress toward a deal, the report added.

Shipping briefly resumed during the ceasefire, but traffic stalled again after Iranian forces fired on tankers and reimposed restrictions.

Analysts warn mined waters could deter insurers and ship operators, limiting transit even without full closure, and leaving parts of the strait unusable with significant market consequences, the report said.

Before the conflict, the strait carried about 20% of global oil flows, with major Asian economies including Japan, South Korea, and China heavily dependent on Middle Eastern energy supplies, the report added.

The White House, US Central Command and the Pentagon did not immediately respond to' request for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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