US Navy to escort tankers in Strait of Hormuz

2026-03-03 - 21:43

Shafaq News- Washington On Tuesday, US President Donald Trump announced that the US Navy would begin escorting oil tankers through the Strait of Hormuz soon, after Iran’s Islamic Revolutionary Guard Corps (IRGC) threats to target passing vessels. In a post on Truth Social, Trump said the US Development Finance Corporation (DFC) would provide political risk insurance and financial guarantees for all maritime trade traveling through the Gulf, particularly energy shipments, at “a very reasonable price,” adding that the coverage would be available to all shipping lines. The announcement comes as shipping and insurance costs surge amid the widening conflict, with energy advisory firm TPH & Co. noting that “skyrocketing shipping (new all-time highs) and insurance rates,” along with reported cancellations of some coverage, have largely halted traffic through the Strait of Hormuz, sharply reducing transit through the strategic oil chokepoint and contributing to higher crude and energy commodity prices. Iran announced that it had fully closed the Strait of Hormuz yesterday to international maritime traffic. Ebrahim Jabbari, an adviser to the commander of IRGC, said that any vessel attempting to pass through the strategic waterway would be targeted. Brent crude retreated to slightly above $80 per barrel after earlier reaching $85 for the first time since 2024, though prices remain about 10% higher than last Friday’s close. In the US, the national average price for regular gasoline rose to $3.11 per gallon, up 11 cents from the previous day, according to AAA.