Trump Says U.S. Could Deploy Navy To Escort Oil Tankers, Orders Insurance Support In Strait Of Hormuz

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 back coverage.

Higher insurance costs have increased voyage expenses for ship operators willing to transit the area. Some tanker owners have delayed sailings or sought alternative routes where possible.

Maritime analytics firm Windward described the situation as a sustained commercial withdrawal rather than a temporary pause. Industry sources said insurance costs for ships operating in the Gulf have risen sharply in recent days.

In a social media post, Trump stated that the United States would ensure the “free flow of energy to the world” and indicated that naval escorts could begin as soon as necessary. He later told reporters that Americans might face higher fuel prices in the short term but expected prices to ease once the conflict stabilises.

As of Monday, the U.S. Navy had 12 warships in the Middle East, including an aircraft carrier.

Some vessels are already involved in military operations, including intercepting Iranian projectiles. Launching escort missions would require repositioning ships and could increase operational risks.

The U.S. Navy has previously escorted tankers in the Gulf during the Iran-Iraq conflict in the 1980s, when Washington reflagged vessels and provided protection after private insurers pulled coverage.

After the September 11 attacks in 2001, the U.S. government also issued insurance support to maintain shipping flows amid war-risk concerns.

Trump said he had instructed the DFC, a U.S. government agency launched in 2019 to partner with private investors in developing markets, to offer political risk insurance and financial guarantees for maritime trade in the Gulf.

The move is intended to ease rising war-risk insurance costs and restore confidence among tanker operators.

Some analysts believe financial guarantees could encourage certain shipowners to resume voyages. Others warned that security threats remain as long as fighting continues.

Shipping sources said that the limited number of available naval escorts may not be sufficient to protect all vessels seeking passage. Some operators may negotiate individual arrangements to secure safe transit.

Crude oil prices fell briefly after President Trump’s announcement but later recovered most of the losses. Analysts said insurance support may lower financial risk, but supply concerns remain linked to production sites and regional stability.

The U.S. administration has not yet used the Strategic Petroleum Reserve. Officials are reviewing options if crude prices continue to climb.

Higher energy prices could create political pressure ahead of the November congressional midterm elections, especially if gasoline prices stay high.

References: Reuters, nytimes