Iran War: US will provide insurance, escort ships out of Strait of Hormuz, says Donald Trump

US-Israel-Iran war: US President Donald Trump said that he has asked United States Development Finance Corporation (DFC) to provide insurance at reasonable price for all maritime trade, especially energy travelling through the Gulf.

This comes after Iran threatened to fire at any ship that attempts to travel out of the Strait of Hormuz. The warning has triggered widespread anxiety about the supply of energy across the world. 

“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. 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,” he said in a social media post. 

DFC is the US government’s development finance agency, with a mission to advance US foreign policy and strengthen national security by mobilising private capital across the world.

“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD. The United States' ECONOMIC and MILITARY MIGHT is the GREATEST ON EARTH - More actions to come,” he added.

The Strait of Hormuz is a vital pathway for trade, connecting the Gulf to the Indian Ocean. Around 20 per cent of the world’s oil flows through it. Oil prices have increased 15 per cent since the US-Israel struck Iran, and is expected to increase further due to a decrease in supply after the closure of the Strait of Hormuz.

While the US is largely self-sufficient in oil production, an increase in oil prices would boost inflation, and further hike costs for Americans.