Trump Orders Maritime Insurance for Gulf Shipping Amid Rising Tensions

Trump's Directive on Maritime Security

Former President Donald Trump has announced that he has instructed the United States International Development Finance Corporation (DFC) to offer "insurance and guarantees" for vessels navigating the Gulf. He suggested that the US Navy might also provide escort services for tankers in the Strait of Hormuz if necessary. In a statement on Truth Social, Trump declared: "Effective IMMEDIATELY, I have ordered the 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." He further emphasized, "If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible. 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."

This announcement comes in the wake of threats from Iran to target vessels in the strait, with some tankers already experiencing attacks in the region. Several maritime insurance providers, including Skuld, Steamship Mutual, and North Standard, have notified their clients about the termination of coverage for war-related damages in these waters. Tom Kloza, an independent oil analyst advising Gulf Oil, stated, "I don’t think Iran can shut down the Strait of Hormuz, but insurance companies and vessel operators can." Trump's initiative aims to support ships that have lost their insurance, which would otherwise leave operators liable for any oil lost due to attacks. Traffic through the strait has significantly decreased, with data from S&P Global Commodities at Sea revealing that only two oil and chemical tankers passed through on Monday, compared to the usual 60 vessels that transit daily, carrying about 20% of the world's oil supply.