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US President Donald Trump on Tuesday ordered the United States Navy to begin escorting oil tankers through the Strait of Hormuz if necessary and directed a federal agency to provide political risk insurance for maritime trade in the Gulf, pledging to safeguard global energy supplies as the Middle East crisis deepens.In a post on Truth Social, Trump said the measures would take effect immediately and apply to all shipping lines operating in the region.“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.
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. Thank you for your attention to this matter! President DONALD J. TRUMP”The Pentagon has not released operational details on when naval escorts would begin or the specific triggers for deployment.
However, the directive signals that preparations could be activated swiftly if commercial vessels request protection or if intelligence assessments indicate imminent threats.
Strait of Hormuz shut for fourth day
The announcement comes as the Strait of Hormuz remained effectively closed for a fourth consecutive day. Shipping reports indicated that at least five oil tankers were hit in the waterway amid escalating hostilities following US and Israeli strikes on Iran and Tehran’s retaliation.An oil tanker, the Palau-flagged Skylight, was attacked off the coast of Oman near the strategic chokepoint, injuring four crew members and forcing a full evacuation. Oman’s Maritime Security Centre said the vessel was targeted about five nautical miles north of Khasab Port in Musandam Governorate. All 20 crew members, including 15 Indian nationals and five Iranian nationals, were evacuated safely.Iran’s Islamic Revolutionary Guard Corps declared via radio transmissions that the Strait of Hormuz was closed to international navigation, although Tehran has not formally announced a full blockade.
Multiple vessels reportedly received VHF warnings stating that “no ship is allowed to pass the Strait of Hormuz”. The British Navy said such orders were not legally binding but advised caution.The strait, which connects the Persian Gulf to the Gulf of Oman, carries roughly 20 percent of global oil supply and significant volumes of liquefied natural gas, particularly from Qatar. It is widely regarded as one of the world’s most critical maritime choke points.Satellite imagery showed vessels backing up near Fujairah in the United Arab Emirates as tanker owners and oil majors suspended crude and LNG shipments. German shipping company Hapag-Lloyd said it was halting transit through Hormuz, while French group CMA CGM instructed ships to seek shelter. Consultancy Kpler reported that at least 14 LNG tankers had slowed, stopped or reversed course.Marine insurers have withdrawn coverage for voyages through the area, exposing operators to significant risk premiums and further disrupting trade.
Energy infrastructure hit, production halted
The crisis has triggered wider ripple effects across the Gulf. Qatar shut down gas production operations, while a Saudi Arabian refinery halted operations in response to the instability in the strait.Iran has also struck energy facilities in Qatar and Saudi Arabia and launched retaliatory drone attacks, including one targeting the US Embassy in Saudi Arabia. Oil markets reopened with speculation that Brent crude could approach $100 per barrel, levels last seen after Russia’s invasion of Ukraine in 2022.Benchmark US crude jumped 8.6 percent to $77.36 a barrel, while Brent crude rose 6.7 percent to $81.29 a barrel. Analysts warned that a prolonged halt in Hormuz could block up to 20 million barrels per day, roughly 20 percent of global supply.Barclays analysts said that extended disruption could severely constrain global energy markets.
US gasoline prices surge
The impact is already being felt by consumers. The average price for a gallon of gasoline in the United States rose 11 cents overnight to $3.11, according to AAA.
In some locations, prices approached or exceeded $4 per gallon.Anne Dulske, filling up in Jackson, Mississippi, said she paid $15 more than usual.“It’s going to affect everything in our lives,” she said. “It’s very scary, and it does hit closer to home than people think.”Patrick DeHaan, head of petroleum analysis at GasBuddy, said: “We are knee-deep into the gas price increases.” He added that while further increases were possible, prices reaching $4 nationally remained “quite improbable based on the current developments.”President Trump addressed the spike in remarks from the Oval Office. “We have a little high oil prices for a little while, but as soon as this ends, those prices are going to drop, I believe, lower than even before,” he said.In Europe, drivers queued at petrol stations amid fears of further disruption. In a suburb of Paris, motorists lined up to fill tanks as diesel prices reached about 1.846 euros per litre.“With Iran and the Strait of Hormuz effectively blocked, it is causing alarm everywhere and driving up oil prices,” said Abdelilah Khalil.
“It’s panic on board, everyone is worried, and I think that’s why many people are rushing to gas stations to fill up.”
Strategic calculus behind US move
Trump’s directive to the Development Finance Corporation to offer political risk insurance appears aimed at stabilising maritime trade by reducing the financial exposure of shipping companies and insurers.Political risk insurance typically protects businesses against losses resulting from war, expropriation, currency inconvertibility and other sovereign risks.
By making coverage available “at a very reasonable price,” the administration appears to be encouraging shipping lines to continue operating despite the heightened security environment.The potential deployment of US naval escorts through the Strait of Hormuz would represent a significant military commitment and a direct effort to ensure freedom of navigation through one of the world’s most sensitive waterways.Previous tanker escort missions in the Gulf have required complex coordination and carried the risk of confrontation with Iranian forces or allied militias.The Pentagon has not confirmed whether additional naval assets are being repositioned in anticipation of escort duties. However, US officials have described the current military posture in the Middle East as one of the largest concentrations of American warships and aircraft in decades.
Uncertain path ahead
With the strait effectively closed, energy infrastructure under threat and global markets rattled, the situation remains volatile. Shipping traffic has slowed to a trickle, insurers have withdrawn cover and governments are scrambling to manage economic fallout.Treasury Secretary Scott Bessent and Energy Secretary Chris Wright are expected to outline measures to address the oil price spike and mitigate domestic economic impact.The Strait of Hormuz has long been considered a flashpoint in regional geopolitics. Any sustained disruption threatens not only Gulf producers but also major energy importers in Asia, Europe and North America.Trump’s pledge that “No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD” signals a readiness to use both economic tools and military force to keep the vital corridor open.Whether naval escorts and insurance guarantees will be enough to calm markets and deter further attacks remains uncertain. For now, the global energy system is bracing for continued turbulence as conflict in the Middle East reverberates far beyond the region.
English (US) ·