Overview
- The directive makes political risk insurance and financial guarantees available immediately through the U.S. Development Finance Corporation to ships transiting the Gulf.
- Trump said the U.S. Navy will escort tankers through the Strait of Hormuz if necessary and hinted that additional measures could follow.
- Tanker traffic through Hormuz has largely stalled as some insurers cut coverage after reported Iranian attacks on vessels and regional targets.
- Oil prices jumped on the disruptions then eased after the announcement, with Brent briefly hitting $85 before retreating and U.S. gasoline averaging $3.11, up 11 cents in a day.
- The White House has not provided details on how the government insurance or potential naval escorts will be executed.