US President Donald Trump announced on Tuesday that the United States may deploy its Navy to escort commercial ships through the Strait of Hormuz and has ordered a government agency to provide political risk insurance for maritime trade in the Gulf region, aiming to secure energy flows amid escalating Middle East conflict.
In a post on Truth Social, Trump said he has directed the US International Development Finance Corporation (DFC) to provide "political risk insurance and guarantees for financial security of all maritime trade, especially energy, traveling through Gulf" at reasonable rates, available to all shipping lines globally.
"If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible," Trump stated. "No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD."
The announcement came as shipping companies have largely halted oil and gas shipments through the strategic waterway, through which about a fifth of the world's oil passes, due to fears of attacks. The sharp reduction in tanker traffic has threatened supply and pushed up oil prices.
International benchmark oil prices briefly dropped over US$2.5 following Trump's statement, though they later regained most of the loss. Aviation and logistics stocks rose on lower oil price expectations, while energy shares generally fell.
Maritime insurers have reportedly canceled existing policies for vessels in the conflict zone and demanded much higher rates for coverage, a risk Trump's insurance offer aims to mitigate.
Oil analysts said the move could make a significant difference by removing financial risk from the equation, though questions remain about which shipping companies will be "brave enough to give this a try."
The Strait of Hormuz is the world's busiest oil transit channel. The US Navy provided similar escorts for tankers in the Persian Gulf during the 1980s.
