US to Insure Tankers, May Escort Ships Amid Iran Strait of Hormuz Tensions
Washington D.C. – The United States government is taking emergency measures to stabilize global energy markets amid escalating tensions with Iran, including offering political risk insurance for maritime commerce in the Gulf and considering naval escorts for tankers through the Strait of Hormuz. The moves arrive after Iran threatened to attack any ship crossing the crucial waterway, potentially disrupting a significant portion of the world’s oil supply.
Trump Announces Insurance and Potential Naval Escorts
President Donald Trump announced the initiatives on Tuesday, March 3, 2026, via his Truth Social platform. “Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at very reasonable rates, political risk insurance and guarantees for the Financial Security of ALL Maritime Commerce, especially Energy, across the Gulf,” Trump stated. He further indicated that the U.S. Navy would be prepared to escort tankers through the Strait of Hormuz “as soon as possible,” adding, “Whatever happens, the United States will ensure the FREE FLOW OF ENERGY AROUND THE WORLD.”
Strait of Hormuz: A Critical Chokepoint
The Strait of Hormuz is a strategically vital shipping lane connecting the Persian Gulf with the Indian Ocean. Approximately 20% of the world’s oil supply passes through this narrow channel, making it a critical artery for global energy markets . Any disruption to traffic through the strait has the potential to cause significant price spikes and economic instability.
Oil Prices Surge Amid Conflict
Oil prices have already experienced a substantial increase since the beginning of the conflict between the U.S. And Iran. Prices jumped more than 10% on Sunday night following initial military strikes , and have continued to climb as Iran threatens to close the Strait of Hormuz. Some analysts predict crude oil could reach over $100 a barrel .
US Response and DFC’s Role
The DFC, a U.S. Government agency focused on international investment, will offer discounted political risk insurance to shipping companies. This insurance aims to mitigate financial losses resulting from potential attacks or disruptions. The move comes as some insurance companies begin to reduce their coverage due to the increased risks in the region .
Iran’s Threat and Regional Concerns
Ebrahim Jabari, a senior Iranian military advisor, stated that any ship attempting to pass through the Strait of Hormuz would be targeted by Iranian forces: “The strait (of Hormuz) is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze.” This threat has heightened concerns among U.S. Leaders about potential pressures on energy markets as the military campaign intensifies .
Trump’s Prediction on Oil Prices
Despite the current surge, President Trump has predicted that oil prices will eventually fall once the U.S. Operation against Iran concludes. He stated that prices would drop “even lower than they were before” .