&imwidth=800&imheight=600&format=webp&quality=medium "'Free flow of energy to the world': Trump orders navy escort for oil tankers in Strait of Hormuz")
President Donald Trump announced that he has directed the United States International Development Finance Corporation (DFC) to provide political risk insurance and financial guarantees for ships traveling through the Gulf, as tensions escalate around the Strait of Hormuz. In a post on Truth Social, Trump wrote, “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. This will be available to all Shipping Lines.” He added, "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. The United States’ ECONOMIC and MILITARY MIGHT is the GREATEST ON EARTH, More actions to come."
The announcement follows threats from Iran to target vessels passing through the strategic waterway. Several tankers have already reported attacks in the region. Maritime insurers including Skuld, Steamship Mutual, and North Standard have notified clients that they are ending coverage for war-related risks in nearby waters, leaving ship operators exposed to potential losses.
Tom Kloza, an independent oil analyst who advises Gulf Oil, told CNN: “I don’t think Iran can shut down the Strait of Hormuz, but insurance companies and vessel operators can.” Trump’s initiative is designed to fill the insurance gap, offering financial protection to vessels that have lost commercial coverage.
Shipping traffic has already declined sharply. Data from S&P Global Commodities at Sea shared with CNN shows only two oil and chemical tankers transited the strait on Monday, compared with a typical daily average of around 60 vessels. The corridor normally carries about 20% of global oil flows.
Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.
