President Trump said on Tuesday that the United States might deploy its Navy to escort commercial ships through the Strait of Hormuz, the waterway south of Iran through which a fifth of the world’s oil travels.
Shipping companies are not sending oil and gas tankers through the strait because they fear they might be attacked. The sharp reduction in tanker traffic is reducing the supply of oil and pushing up its price. A prolonged shutdown of the strait could lead to higher gas prices for consumers.
“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,” Mr. Trump said in a post on Truth Social.
The price of oil fell after Mr. Trump made his announcement but quickly regained most of that ground. The announcement also helped lift stock prices.
“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” Mr. Trump said.
Mr. Trump also said that he had ordered a U.S. government agency to offer insurance and risk guarantees to “all shipping lines.” The U.S.-Israeli conflict with Iran has prompted maritime insurers to cancel existing policies for vessels sailing in the area of the conflict and demand that shipping companies pay much higher rates for coverage.
Oil analysts said the offer of help could make a difference.
“That will make a big difference — you’ve taken the financial risk out of the equation,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm, referring to Mr. Trump’s offer of insurance.
Mr. Pickering said he expected tankers to eventually resume passing through the strait, but added, “What we’ll have to watch is who is brave enough to give this a try.”
A Department of Defense spokesman told The New York Times on Sunday that the Pentagon was not planning an escort. But since then, tanker traffic through the Strait of Hormuz has all but dried up. Windward, a maritime analytics company, said on Tuesday that there had been a “sustained commercial withdrawal from the corridor rather than temporary hesitation.”
The U.S. Navy provided escorts for tankers in the Persian Gulf in the 1980s.
Eric Schmitt contributed reporting.
Peter Eavis reports on the business of moving stuff around the world.
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