President Donald Trump said Tuesday the US will provide naval escorts and political risk insurance for oil and gas tankers moving through the Strait of Hormuz, as energy markets react to escalating conflict with Iran.
In a Truth Social post, Trump announced immediate action. “Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf,” Trump said. “This will be available to all Shipping Lines. If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible.”
“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” and said there would be “more actions to come.”
US oil prices were trading near $73 barrel Tuesday, down from more than $77 earlier in the day. Crude had climbed over $10 per barrel since the US and Israel launched strikes against Iran on Saturday.
The Strait of Hormuz handles roughly 20 percent of global seaborne oil shipments. Although it remains open for the time despite IRGC threats, insurers have raised premiums and in some cases withdrawn coverage for vessels transiting the waterway. Analysts say that has led some tankers to avoid the route, slowing traffic.
A person familiar with White House discussions, granted anonymity to discuss internal conversations, said officials are monitoring economic impacts from the military campaign, reports Politico.
"It’s becoming a growing concern that the energy markets could face pressures in the coming days as the military campaign intensifies and expands in geographic scope,” the person said. “Access to the Straits of Hormuz is obviously vital for both natural gas and crude oil shipments, especially from Qatar and Saudi.”
The conflict has expanded since the weekend. Six American service members have been killed, and the US embassy in Saudi Arabia has come under attack. Iran has fired on ships in the region. Qatar shut down a major natural gas export facility, and Saudi refineries have been targeted.
The US military says it has sunk 11 Iranian vessels since operations began. A former defense official familiar with discussions said the Pentagon is considering a maritime mission similar to past Red Sea deployments aimed at protecting navigation.
Secretary of State Marco Rubio said Monday that the administration would outline steps to address rising oil prices, stating, “We’re going to destroy their Navy.”
In a Truth Social post, Trump announced immediate action. “Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf,” Trump said. “This will be available to all Shipping Lines. If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible.”
“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” and said there would be “more actions to come.”
US oil prices were trading near $73 barrel Tuesday, down from more than $77 earlier in the day. Crude had climbed over $10 per barrel since the US and Israel launched strikes against Iran on Saturday.
The Strait of Hormuz handles roughly 20 percent of global seaborne oil shipments. Although it remains open for the time despite IRGC threats, insurers have raised premiums and in some cases withdrawn coverage for vessels transiting the waterway. Analysts say that has led some tankers to avoid the route, slowing traffic.
A person familiar with White House discussions, granted anonymity to discuss internal conversations, said officials are monitoring economic impacts from the military campaign, reports Politico.
"It’s becoming a growing concern that the energy markets could face pressures in the coming days as the military campaign intensifies and expands in geographic scope,” the person said. “Access to the Straits of Hormuz is obviously vital for both natural gas and crude oil shipments, especially from Qatar and Saudi.”
The conflict has expanded since the weekend. Six American service members have been killed, and the US embassy in Saudi Arabia has come under attack. Iran has fired on ships in the region. Qatar shut down a major natural gas export facility, and Saudi refineries have been targeted.
The US military says it has sunk 11 Iranian vessels since operations began. A former defense official familiar with discussions said the Pentagon is considering a maritime mission similar to past Red Sea deployments aimed at protecting navigation.
Secretary of State Marco Rubio said Monday that the administration would outline steps to address rising oil prices, stating, “We’re going to destroy their Navy.”
