Trump orders US guarantees for Gulf shipping as Iran conflict escalates
2026-03-04 - 00:02
President Donald Trump announced Tuesday that he has directed the US International Development Finance Corporation (DFC) to provide sweeping insurance and guarantees for maritime trade passing through the Gulf, as the US-Israeli war against Iran disrupts one of the world's most critical energy arteries. "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," Trump wrote on his Truth Social platform. Naval escorts promised The president indicated that US military forces could become directly involved in protecting commercial shipping if necessary. "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," he added. The DFC, a US government development bank, will make the insurance available to all shipping lines regardless of nationality, broadening the protective umbrella for global trade. Iran claims blockade The announcement follows claims by Brig. Gen. Ebrahim Jabbari, a senior adviser to the Islamic Revolutionary Guard Corps commander-in-chief, that vessel and oil tanker transit through the Strait of Hormuz has been halted, with warnings that ships attempting passage would be targeted. The statement, delivered during relatively thin global trading hours Sunday, drove Brent crude to test $80.80 per barrel in early Asian trading—its highest level in nearly 15 months. Energy markets roiled Oil prices have surged dramatically since Saturday's US-Israeli strikes on Iran, which killed Supreme Leader Ayatollah Ali Khamenei and dozens of senior commanders. On March 2, Brent jumped 7.1% to close at $78.15, while West Texas Intermediate rose 6.2% to $71.33, pushing prices to recent highs. The accumulated geopolitical risk premium reflects market fears that the Strait of Hormuz closure could remove approximately 21 million barrels of oil and derivatives from daily global supply. Regional conflict expands Iran has retaliated against US-Israeli strikes with sweeping barrages targeting US bases, diplomatic facilities and military personnel across the region, as well as multiple Israeli cities. The UAE reported intercepting over 1,000 Iranian attacks, while the CIA station within the US Embassy in Riyadh was struck by drones, causing structural damage. Trump's shipping protection initiative represents a direct US response to Tehran's attempts to weaponize the Strait of Hormuz, setting the stage for potential naval confrontations in the strategic waterway.