Washington, DC – In a strategic move aimed at containing the global economic turmoil stemming from the conflict with Iran, US President Donald Trump announced a comprehensive plan to secure maritime shipping through the Strait of Hormuz. This plan includes providing government insurance coverage. It also offers direct military escorts for oil and gas tankers.
The US Navy as a guardian of navigation
Through his platform, Truth Social, Trump delivered a firm message to the international community. He also addressed companies that have suspended their transit through the Strait of Hormuz. He affirmed the Navy’s readiness to intervene directly. Trump wrote on Tuesday: “If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz as soon as possible.”
This move comes in response to Iranian threats to target transiting vessels. It is a policy reminiscent of Operation Earnest Will in the 1980s. Through this action, Washington seeks to ensure “the free flow of energy to the world.” The goal is also to prevent oil prices from reaching record highs.
“Reasonable” insurance for shipping companies
To address the problem of private insurance companies withdrawing from the region, President Trump issued an immediate directive to the U.S. International Development Finance Corporation (DFC). He mandated that DFC provide political risk insurance and financial guarantees for all maritime commercial activity in the Arabian Gulf and the Gulf of Oman.
Trump explained that these guarantees would be available at a “very reasonable price.” The goal is to encourage shipping companies by reducing the financial burden from high war risk insurance premiums.
The plan aims to ensure the continuity of supply chains. It also seeks to guarantee the uninterrupted flow of energy and commercial goods.
While the plan focuses on the energy sector, Trump emphasized that it is available to all global shipping companies wishing to transit the Strait of Hormuz.
Presidential pledge of stability
During his meeting with German Chancellor Friedrich Merz in the Oval Office, Trump reiterated his commitment to protecting maritime routes. He asserted that the United States’ military and economic capabilities are sufficient to crush any attempt to blackmail the world by closing international straits.
He added, “Whatever happens, the United States will ensure the free flow of energy.”
According to Bloomberg reports, Trump’s remarks helped to calm markets somewhat. Brent crude prices dipped briefly after the insurance plan was announced. This reflects investors’ bet on Washington’s ability to break the current maritime blockade.
