Oil Tankers Will Be Protected by U.S. Navy, Trump Vows

US President Donald Trump has said the country’s navy will protect ships in the Middle East “if necessary” in a bid to stop the energy supply crunch sparked by the US-Israel war with Iran.

Roughly 200 crude oil and product tankers are now stranded in the Gulf.

A fifth of the world’s oil and gas flows through the Strait of Hormuz, a narrow waterway wedged between Iran and the United Arab Emirates, but traffic has almost entirely halted following Iran’s threats to “set fire” to ships, Natalie Sherman reported for BBC News.

Trump said the US government will provide risk insurance “at a very reasonable price” to all shipping firms in the region to “ensure the FREE FLOW of ENERGY to the WORLD.”

A fifth of the world’s oil and gas flows through the Strait of Hormuz, a narrow waterway wedged between Iran and the United Arab Emirates, but traffic has almost entirely halted following Iran’s threats to “set fire” to ships, Natalie Sherman reported for BBC News.

Trump said the US government will provide risk insurance “at a very reasonable price” to all shipping firms in the region to “ensure the FREE FLOW of ENERGY to the WORLD.”

Experts warn these assurances might not be enough to ease companies’ concerns.

Trump made the announcement on social media as global oil and gas prices continued to surge, sparking worldwide concern about the impact on household prices.

An Iranian official on Monday threatened to “set fire” to any ship trying to pass through the Strait of Hormuz, and the Iranian military has reportedly fired on several vessels in the area.

Some insurance companies have since hiked the price of policies for ships in the region.

Roughly 200 crude oil and product tankers are now stranded in the Gulf, according to data from Lloyd’s List Intelligence.

Trump said he had ordered the United States Development Finance Corporation (DFC) to provide political risk insurance and guarantees “at a very reasonable price” for all maritime trade, especially energy shipments traveling through the Gulf.

Despite Trump’s announcement, Richard Meade, editor-in-chief of the shipping journal Lloyd’s List, said it remains unclear whether the US president will be able to address the safety concerns driving the supply crunch.