Removing all mines from the Strait of Hormuz to ensure the key waterway is safe for shipping could take weeks even after a deal between the U.S. and Iran to end the war, according to a new report.
Western maritime security sources cited by Reuters noted that operations involving minesweepers and underwater drones could continue for 40 or 50 days after a deal. Only then some shipping companies could be confident enough to send their vessels through the key waterway.
"We still consider it very risky for ships to commence transits at this point," Jakob Larsen, chief safety & security officer at shipping association BIMCO, told the outlet. "The threat of mines in the area remains a concern immediately as well as further down the line and mine-free routes need to be established."
The outlet went on to note that the chance of there being mines could lead companies to refrain from crossing. Supertankers and their cargo are worth some $300 million.
At the same time, oil prices plunged after the tentative agreement was announced. Brent crude and West Texas Intermediate dropped about 5% at 9:45 a.m. ET, with the former hovering around $83 a barrel and the latter at $80.50.
Elsewhere, Vice President JD Vance said "a lot" of details still need to be negotiated with Iran to formally end the war, but claimed the U.S. holds "all the cards" in the upcoming talks.
Speaking on CNBC's Squawk Box, Vance claimed that the two most important achievements of the deal are reopening the Strait of Hormuz and getting Iran to formally commit to never pursue the development of a nuclear weapon.
Should Tehran abide by its commitments, the country will see the loosening of economic sanctions and the removal of other barriers that will allow it to be "reinvited into the world economy."
Vance went on to say that "there are a lot of very important details to figure out that we're actually going to sit at the table and discuss together and figure out a path forward on these details."
"They want access to an unsanctioned economy. We've talked about, 'OK, we're open to that,' but that would require a long-term commitment to the inspection and verification regime that I just talked about," he added, referring to a mechanism to make sure that the country is not pursuing a nuclear weapon. "A lot of these details are going to be figured out during those 60-day talks," he said.
