Iran War Escalates as Strait of Hormuz Becomes Key Battleground, Costs Mount
DUBAI, United Arab Emirates (AP) — The war between the United States, Israel and Iran has entered a dangerous new phase, with Iran effectively closing the Strait of Hormuz, a vital global oil artery, and escalating costs already exceeding $11 billion for the U.S. alone in its first week, according to Pentagon estimates. The conflict, now 13 days old, is marked by uncertainty and shifting objectives from the Trump administration, raising concerns about its potential duration and wider implications.
The Strait of Hormuz has emerged as the central point of contention, with Iran utilizing it as leverage against the U.S. and its allies. Ayatollah Mojtaba Khamenei, Iran’s new supreme leader, stated Thursday that blocking the strait “must undoubtedly continue to be used,” in his first public statement since assuming power. Reports from CNN and Reuters indicate Iran has begun laying mines in the waterway, and multiple oil tankers have reportedly been hit by “projectiles.”
Despite these reports, President Trump and Treasury Secretary Scott Bessent have downplayed the threat, with Trump stating Wednesday he didn’t believe Iran had planted mines and Bessent claiming some Iranian-flagged tankers have safely transited the strait. U.S. Central Command reports destroying over 30 Iranian mine-laying ships, but experts caution that countering mines will be challenging, as the U.S. Navy decommissioned its minesweeper vessels in the Middle East last September.
Gregory Brew, an Iran expert at Eurasia Group, explained that Iran possesses a “variety of capabilities” beyond mines, including anti-ship ballistic missiles and drones. He warned that the strait is likely to remain closed for the rest of the month without rapid de-escalation.
The financial strain of the war is significant. The Pentagon has informed Congress that the first week of conflict cost more than $11 billion. This has led to speculation about the U.S. potentially reallocating military resources from other regions, with reports suggesting the movement of a Terminal High Altitude Area Defense (THAAD) system from South Korea to the Middle East. South Korean officials have expressed opposition to this move, though acknowledge their limited ability to prevent it.
Adding to the complexities, a preliminary Pentagon investigation, as reported by The New York Times, suggests the U.S. military was responsible for a February 28 missile strike on an Iranian elementary school that killed over 175 people, mostly children. The strike reportedly occurred due to outdated targeting information. Defense Secretary Pete Hegseth has not directly addressed the school attack, but alleges Iran has been firing missiles from schools and hospitals. More than 40 Democratic senators have demanded answers and the public release of investigation findings.
Beyond the Middle East, the U.S. continues lethal strikes against alleged drug boats in Latin America, and has launched a joint operation with Ecuador targeting organized crime.
Meanwhile, the U.S. Defense Department is facing a legal challenge from artificial intelligence company Anthropic, which is suing over being declared a supply chain risk. Tech giants Microsoft, Google, and OpenAI, along with former military officials, have publicly backed Anthropic in its legal battle.
Upcoming events to watch include a meeting of European Union energy ministers on March 16, a bilateral visit between U.K. Prime Minister Keir Starmer and Canadian Prime Minister Mark Carney, and an extraordinary session of the International Maritime Organization on the situation in the Middle East on March 18. A meeting between President Trump and Japanese Prime Minister Sanae Takaichi is scheduled for March 19.
The situation remains fluid and volatile, with the potential for further escalation and significant global repercussions.
