Strait of Hormuz Declared Open After US Mine-Clearing: What It Means for Latin America

On 27 August 2026, the United States declared the Strait of Hormuz open after a mine-clearing operation targeted Iranian sea mines. The clearance operation, conducted by the US Central Command, removed over 100 suspected mines found in recent months using underwater drones. Private contractors then disposed of the devices. President Donald Trump had threatened American forces would destroy any Iranian vessel laying new mines. Tehran agreed to a shipping corridor with Oman, but only if Washington met unspecified conditions.

However, ship traffic through the strait remains low, between 5 to 15 percent of normal volumes according to tracking services. This has significant implications for Latin America. The closure of the strait, which carries about a fifth of the world's traded oil, led to rising costs for fuel, fertilizer, and freight. Brazil, which imports 85 percent of its fertilizer, saw prices soar when the strait was closed, disrupting its farming sector.

Oil prices, led by Brent crude, reached a five-week high of US$93.01 a barrel before easing to around US$90. The US Energy Information Administration predicts Brent to average around US$85 in the third quarter and US$78 in the fourth quarter.

However, the situation is still cautious. The US naval blockade of Iranian ports and financial pressure remain in place. The UN's International Maritime Organization has recorded 70 incidents that killed 19 seafarers. The release of frozen Iranian funds and the lifting of the US port blockade are crucial next steps. If met, it could bring cheaper oil, freight, and fertilizer to Latin America, easing one of the region's most significant costs.