Strait of Hormuz in Flames, Trump Pitches Insurance for Ships Transiting
Strait of Hormuz Ablaze, Trump Pitches Insurance for Ships Transiting
Jakarta, CNBC Indonesia - A global surge in oil prices sparked by the war with Iran has prompted U.S. President Donald Trump to take emergency measures. The U.S. government will provide political risk insurance for ships transiting the Gulf after Iran was assessed as having nearly closed the Strait of Hormuz.
The announcement was made by Trump via social media on Tuesday, 3 February 2026, local time, amid energy market turmoil that has intensified since the outbreak of war over the weekend.
“Effective IMMEDIATELY, I have directed the United States Development Finance Corporation (DFC) to provide, at a very fair price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, particularly Energy, that transits the Gulf,” he wrote.
DFC is the U.S. government’s development finance agency, tasked with promoting U.S. foreign policy and strengthening national security by mobilising private capital around the world.
Trump added that the discounted insurance scheme would be available for all shipping lanes. He also floated the possibility of deploying military force to secure commercial vessels.
“If necessary, the United States Navy will begin to escort tanker ships through the Strait of Hormuz, as soon as possible,” he wrote. “Whatever happens, the United States will ensure FREE FLOW OF ENERGY to THE WHOLE WORLD.”
The Strait of Hormuz is a global trade artery linking the Gulf region with the Indian Ocean. Around 20% of world oil supplies pass through this narrow route. A closure or disruption in the region would trigger panic in markets.
Oil prices have jumped more than 15% since the United States and Israel launched strikes on Tehran that triggered war with Iran. The increase could rise further as supply is constrained by the closure of the strait and attacks on energy installations in the Gulf region.
Several insurance companies have been reported to be reducing cover amid rising risk from Iran’s attacks on ships and energy facilities.
Although the United States is relatively self-sufficient in oil production, global price spikes continue to have a direct impact on the domestic economy. Higher energy prices could trigger inflation and weigh on consumers.