The White House will offer naval escorts and political risk insurance for oil and gas tankers traversing the Strait of Hormuz, President Donald Trump said Tuesday, in a bid to cool energy prices that have surged since Iran warned it would attack ships at the choke point.
The announcement brought some immediate relief to the overheated crude oil market, curbing the rally that had added more than $10 a barrel of oil since the U.S. and Israel began launching strikes against Iran on Saturday. Still, energy markets remain nervous that key oil and gas assets in the Persian Gulf may be targeted by Tehran.
“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 in a Truth Social post. “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,” Trump continued, promising “more actions to come.”
