On Tuesday, President Donald Trump announced he has instructed the U.S. government to offer political risk insurance and financial guarantees for maritime trade passing through the Persian Gulf. He also indicated that U.S. Navy escorts for tankers in the Strait of Hormuz might begin "as soon as possible."
In a statement on Truth Social, Trump said: “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, crossing through the Gulf. This will be available to all shipping lines.”
He continued: “If necessary, the United States Navy will start escorting tankers through the Strait of Hormuz, as soon as possible. Regardless, the United States will ensure the FREE FLOW of ENERGY to the WORLD.”
This announcement comes as the marine insurance market is quickly pulling back from the region following U.S. and Israeli strikes on Iran, along with a series of missile and drone attacks aimed at commercial vessels in the Gulf.
Breaking: Trump orders the DFC to provide risk insurance for all maritime trade transiting the Gulf and says the U.S. Navy may begin escorting tankers through the Strait of Hormuz pic.twitter.com/bH8QY3dHUZ
— Mike Schuler (@MikeSchuler) March 3, 2026
Over the weekend, several members of the International Group of P&I Clubs, which insures around 90% of the world's shipping, issued 72-hour cancellation notices for specific war risk covers related to Iran and nearby Gulf waters. The Group mentioned that they are “closely monitoring developments over the weekend and the ongoing military operations in the Persian Gulf,” and would keep stakeholders updated on any changes in coverage.
Additionally, London’s Joint War Committee expanded its high-risk areas to include the waters surrounding Bahrain, Djibouti, Kuwait, Oman, and Qatar due to “recent events,” according to a market advisory reported by Reuters. Gulf war risk premiums have soared fivefold recently compared to last week, adding hundreds of thousands of dollars to the cost per journey, Reuters noted.
This tightening insurance situation has coincided with a sharp drop in vessel traffic through Hormuz. The Joint Maritime Information Center raised the regional maritime threat level to CRITICAL this week, stating that “insurance availability may now act as a primary factor for transit decisions apart from formal navigation closures.” AIS data indicates that vessel transits have decreased by about 80% from historical averages as operators reassess their risk.
In this context, Trump's directive seems aimed at addressing the insurance bottleneck. The United States International Development Finance Corporation generally provides political risk insurance and financial support for overseas projects. Expanding its role to support commercial maritime operations in an active conflict zone would be a significant intervention in global shipping markets.
Trump framed this move as both an economic and security necessity. “The United States’ ECONOMIC and MILITARY MIGHT is the GREATEST ON EARTH — More actions to come,” he wrote.
The possibility of U.S. naval escorts adds another important factor. In the past, the United States Navy has conducted convoy and reflagging operations in the Gulf during times of high tension, particularly during the late 1980s tanker war. It remains unclear whether any new escort mission would be limited to U.S.-flagged vessels or extend to foreign-flagged tankers as well.
No official closure of the Strait of Hormuz has been announced. However, confirmed missile and drone strikes against multiple vessels lately, along with ongoing GPS interference and insurance withdrawal, have significantly reduced traffic through one of the world’s most vital energy passageways.