The United States could deploy naval escorts for commercial oil tankers transiting the Strait of Hormuz, President Donald Trump said on Tuesday, as escalating tensions involving Iran begin to affect vessel movements in one of the world’s most critical oil chokepoints.
He also instructed the U.S. International Development Finance Corporation (DFC) to provide political risk insurance and financial guarantees to support vessels operating in the Gulf.
The statement follows a sharp drop in tanker traffic through the Strait of Hormuz and a rise in global crude oil prices after Israeli and U.S. strikes on Iran over the weekend. About 20% of the world’s oil supply passes through the narrow waterway between Iran and Oman.
Oil and gas shipments through the strait have slowed as shipowners review security risks. Some tankers have reportedly been hit by strikes, while others are waiting offshore. Marine insurers have increased war-risk premiums, and in some cases, pulled
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