US President Donald Trump on Tuesday evening CET announced that the US Navy will begin escorting oil tankers through the Strait of Hormuz as soon as possible if necessary. According to him, the United States will in any case guarantee the free flow of energy raw materials throughout the world, he wrote on his Truth Social network, reports TASR.
Trump announced that, effective immediately, he has ordered the government’s Development Finance Agency (DFC) to to “provide at a very reasonable cost political risk insurance and financial security guarantees” for all maritime trade, especially in the field of energy, passing through the Persian Gulf. “This service will be available to all shipping companies,” stated.
In the wake of the war in the Middle East, triggered by Saturday’s US and Israeli strikes on Iran, oil prices rose sharply on world markets. Cruising through the Strait of Hormuz, connecting the Persian Gulf with the Arabian Sea, has practically stopped since the weekend. Iran’s Revolutionary Guards warned on Monday that they would set fire to any ship that tries to cross there.
However, Tehran did not officially close the strait, and the Iranian Minister of Foreign Affairs, Abbas Arakchi, assured that that he doesn’t even intend to. About a fifth of the world’s oil production is transported through this narrow waterway between Iran and Oman during normal operation. Trump told reporters on Tuesday, that Americans may have to put up with higher oil prices for a while. “But as soon as it’s over, I think prices will drop below what they were before.” he declared according to the Reuters agency.
Even before the US President’s announcement, shipping companies and insurance companies began to reassess, what risk they are in the middle east for continued war. As a result, insurance premiums have increased significantly and some providers have reduced or completely withdrawn from providing these services. writes Reuters. Carriers, on the other hand, are postponing sailings or looking for safer alternative routes.
