President Donald Trump announced Tuesday that the U.S. will provide government insurance and financial security guarantees for all maritime trade, particularly energy shipments, navigating the Gulf region amidst the escalating Iran war. Trump directed the United States International Development Finance Corporation to offer political risk insurance to oil tankers and commercial ships "effective immediately" at a "very reasonable price." He further stated that the U.S. Navy may escort tankers through the Strait of Hormuz if necessary, vowing to "ensure the free flow of energy to the world."
The Strait of Hormuz has been impassable for four days following Iranian attacks on five vessels, disrupting a critical shipping artery for approximately 20% of the world's oil supply. The conflict has already driven oil prices up, with U.S. oil prices rising over five percent to $75.22 a barrel on Tuesday.