President Donald Trump announced Tuesday that the United States Navy will escort oil tankers through the Strait of Hormuz if necessary and directed the U.S. International Development Finance Corporation (DFC) to provide war-risk insurance for maritime shipping in the Persian Gulf.
The move comes amid major disruptions to global energy markets following the U.S.-Israeli military campaign against Iran, which has led to damaged vessels, blocked shipments, and surging oil prices.
In a statement posted to social media, Trump said the DFC would offer political risk insurance and financial guarantees for “all Maritime Trade, especially Energy,” traveling through the Gulf at what he described as “a very reasonable price.” He added that U.S. naval escorts would begin “as soon as possible” if required to protect shipping lanes.
“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” Trump wrote. “More actions to come.”
The announcement followed reports that Treasury Secretary Scott Bessent and Energy Secretary Chris Wright had prepared options to stabilize oil markets after private insurers either withdrew coverage or sharply increased premiums for ships operating in the region. Secretary of State Marco Rubio had also previewed an imminent response to the disruption.
The dual strategy — pairing federal insurance backstops with potential naval escorts — mirrors actions taken during the 1980s Tanker War, when the Reagan administration reflagged Kuwaiti tankers and provided U.S. naval protection after private insurers pulled back. The federal government also provided war-risk insurance to maritime carriers following the September 11 attacks.
The Strait of Hormuz, a narrow passage between Iran and Oman, carries roughly 20 percent of the world’s oil supply. Since strikes against Iran began, tanker traffic has slowed dramatically, with some vessels damaged and others stranded. War-risk insurance costs have spiked, embedding a “fear premium” into global crude prices.
By deploying the DFC as an insurer of last resort, the administration aims to restore shipping confidence without immediately tapping the Strategic Petroleum Reserve. Officials have indicated they remain prepared to use the reserve if necessary.
Trump acknowledged Americans may face higher oil prices in the short term but predicted prices would ultimately fall once stability returns. Whether markets accept that assessment will likely depend on how quickly normal tanker traffic resumes and whether the insurance and escort measures succeed in calming energy markets.
