US President Donald Trump announced on Tuesday that his government will offer political risk insurance «at a reasonable price» and, in some cases, a military escort for maritime trade transiting the Strait of Hormuz, which was closed by Iran in response to attacks by the US and Iran.
«Effective immediately, I have ordered the US Development Finance Corporation (DFC) to provide, at a very reasonable price, insurance and guarantees against political risks for the financial security of all maritime trade, especially energy, transiting the Gulf (Persian)», Trump wrote on his social media platform, Truth Social.
The Republican added that «this insurance will be available to all shipping lines» and that «if necessary, the US Navy will begin escorting tankers through the Strait of Hormuz as soon as possible».
The closure of the Strait of Hormuz, the only maritime passage connecting the Persian Gulf to the Gulf of Oman and the Indian Ocean, announced by the Iranian government following US and Israeli attacks that began over the weekend, has virtually paralyzed maritime traffic in the region.
Tehran has even threatened to attack any vessel attempting to cross the strait, which has sparked great concern over the supply of hydrocarbons from the region and the coverage and rising premiums faced by shipping companies.
Since the start of the war on Saturday, both oil prices, which have widely surpassed the $80 per barrel threshold for Brent, and gas prices on the European reference market have nearly doubled to over 60 euros per megawatt-hour (MWh).
«No matter what, the United States will guarantee the free flow of energy to the world,» concludes Trump's message, adding that «further measures related to maritime transport around the Persian Gulf will be taken soon».
Trump faces key legislative elections this year, and one of his main campaign promises has been the drop in energy and gasoline prices.
