Trump administration officials are discussing ideas to kick-start oil tanker traffic through the Strait of Hormuz, including a plan that would offer a fee-based “VIP pass” naval escort through the waterway, three people familiar with the discussions said.
President Donald Trump and White House chief of staff Susie Wiles have called for ideas to convince ship owners to take the risk of transiting the strait as the United States and Iran continue peace talks, said two energy industry officials familiar with the talks. The discussions so far have centered on ways to convince insurance companies to offer coverage to travel through a narrow waterway in which Iran has successfully attacked vessels.
“The President and Susie are giving them explicit orders to figure something out,” said one person familiar with the discussions who was granted anonymity to describe private discussions. “With limited exceptions, every transit [through Hormuz] is violating insurance plans. So what can be done to accelerate the insurers to start insuring again?”
None of the ideas being discussed have been finalized, these people said. The spitballing comes as just under 500 ships, including 220 oil tankers, remain parked in the Persian Gulf outside Hormuz, according to Kpler, a commodity analyst firm. The two countries have signed a memorandum of understanding laying out issues to be negotiated in the coming months, but traffic remains largely stalled because ship owners remain wary of the fragile peace falling apart.
