Trump Makes Big Move on Strait of Hormuz

With oil prices rising amid the US-led war on Iran, President Trump has moved to quell fears of an energy crisis. He said Tuesday that the US would provide naval escorts, if necessary, for oil tankers passing through the Strait of Hormuz. Around a fifth of the world's oil passes through the strategic waterway, but it has been effectively closed since US and Israeli strikes on Iran began on the weekend, reports the Guardian. The president also said the government would provide insurance guarantees, Bloomberg reports.

• "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," Trump said in a post on Truth Social. "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. No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD."

Political risk insurance is "a type of coverage intended to protect firms against financial losses caused by unstable political conditions, government actions, or violence," per the AP. On Monday, an Iranian commander threatened to attack any ship passing through the strait, the Wall Street Journal reports. Ebrahim Jabari, a senior adviser to the commander-in-chief of the Revolutionary Guards, said the strait is "closed" and "if anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze." Iran has hit at least five tankers since Saturday, killing one sailor.