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The Pentagon's assessment points to potentially long-lasting economic consequences, as the critical trade artery carried a fifth of the world's oil during peacetime.
The Pentagon announced US Navy Secretary John Phelan's departure in a brief statement, saying he was leaving the administration "effective immediately."
US-Israel-Iran War Ceasefire News Live Updates: The standoff between the US and Iran has effectively choked off nearly all exports through the strait -- where 20 per cent of the world's traded oil passes in peacetime -- with no end in sight.
US-Iran War, Ceasefire, Peace Talks Updates: The war is in its eighth week and has sent oil prices surging because of the closure of the Strait of Hormuz.