Trump orders DFC backing for Gulf shipping
US President Donald Trump says US will insure maritime trade and escort tankers through Strait of Hormuz to secure global energy flows.
Former US President Donald Trump said he has ordered the United States International Development Finance Corporation to provide political risk insurance and guarantees to secure maritime trade, particularly energy shipments moving through the Gulf.
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In a social media post, Trump said the directive would take effect immediately. He stated the coverage would be offered “at a very reasonable price” and made available to all shipping lines. The goal, he added, is to ensure the uninterrupted flow of energy supplies to global markets.
Trump also said the United States Navy would begin escorting tankers through the Strait of Hormuz if necessary. He pledged that the United States would ensure the “free flow of energy to the world,” citing national economic and military strength.
The Strait of Hormuz is one of the world’s most critical energy chokepoints. According to the US Energy Information Administration, roughly 20% of global petroleum liquids consumption passes through the narrow waterway daily. Any disruption there can sharply impact oil prices and shipping insurance costs.
Political risk insurance typically protects investors and shippers against losses arising from war, expropriation or government actions. The DFC, created in 2019, provides financing and insurance to advance US strategic and development objectives abroad. It has authority to back projects and transactions in emerging markets.
Oil markets have historically reacted swiftly to security concerns in the Gulf region. Brent crude prices have spiked during past tensions involving Iran and Western powers. Shipping companies often face higher premiums when insurers assess elevated geopolitical risks.
The United States has previously deployed naval escorts during periods of heightened threats in Gulf waters. Similar measures were undertaken in 2019 after attacks on commercial tankers raised concerns about maritime security.
Trump’s statement comes amid renewed debate over energy security and global supply chains. Analysts say formal US backing for shipping insurance could ease market fears if implemented swiftly. However, operational details and legal mechanisms behind the directive were not immediately clear.
Energy-importing nations in Asia and Europe depend heavily on crude and liquefied natural gas shipments transiting the Gulf. Any assurance of safe passage through the Strait of Hormuz would likely be welcomed by major oil buyers.
