President Trump announced on Tuesday that he will be taking steps to protect crucial oil transportation during the ongoing military action in Iran. In a Truth Social post, the president outlined a brief plan to provide financial insurance for maritime trade vessels. Trump also noted the possibility of U.S. military escorts for vessels traveling through the region.
“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,” President Trump said. “This will be available to all Shipping Lines. If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible.”
The announcement from President Trump marks a key step in combatting a rise in energy prices following the strikes on Iran. After attacks from U.S. and Israeli forces commenced early on Saturday, Iran responded with retaliatory strikes throughout the region, resulting in stock market declines and a rise in oil prices.
Iranian strikes included firing missiles and drones at nations that host U.S. military bases. Iranian counterattacks could potentially strain shipping through the crucial Strait of Hormuz, which facilitates the passage of one-fifth of global oil and liquefied natural gas.
President Trump responded to concerns about energy markets by praising the strength of the U.S. military and assuring that the flow of energy resources would not be disrupted.
“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” President Trump said. “The United States’ ECONOMIC and MILITARY MIGHT is the GREATEST ON EARTH — More actions to come.”