Overview
- President Donald Trump authorized the Development Finance Corp. to underwrite war-risk coverage for Gulf shipping and said the U.S. Navy could escort tankers, with Treasury Secretary Scott Bessent signaling more support measures shortly.
- Crude prices slipped for the first session since strikes began, with WTI near $74 a barrel and Brent around $81, though banks warn higher insurance and freight could add $5 to $15 per barrel in costs.
- Tanker movements through the Strait of Hormuz remain severely curtailed as shipowners hold back, sustaining the risk premium even as policy steps ease the immediate price surge.
- Regional energy sites have been hit or curtailed, including limited damage reported at Saudi Arabia’s Ras Tanura refinery and a halt to LNG production by QatarEnergy, which helped drive European gas to near three‑year highs before a partial pullback on talk of possible negotiations.
- Global markets remain volatile, with South Korea’s Kospi down about 12% and Japan’s Nikkei lower, while European and U.S. stocks stabilized; analysts caution that prolonged disruptions could trigger a major supply shock and note that higher prices are boosting Russia’s energy revenues.