WASHINGTON: US President Donald Trump said on Tuesday (Mar 3) he had ordered the US International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade travelling the Gulf, adding that the US Navy could begin escorting oil tankers through the Strait of Hormuz if necessary.
The announcement marks one of the administration’s most aggressive steps yet to contain rising energy prices and calm oil markets amid escalating conflict in the Middle East that has raised risks to shipping through key waterways.
Trump has made lower fuel costs for Americans central to his economic messaging, and the move signals a willingness to use financial and military tools to prevent disruptions to global crude supplies.
“No matter what, the United States will ensure the free flow of energy to the world,” Trump said in a social media post.
Trump added that more actions are coming.
Global crude prices have spiked since Israeli and US forces began striking Iran over the weekend, leading to fighting that has interrupted Middle East oil tanker shipments.
Treasury Secretary Scott Bessent and Energy Secretary Chris Wright were expected to meet with Trump on Tuesday afternoon to present a list of proposals to address the issue and finalise a response, two sources familiar with the plan told Reuters on condition of anonymity.
Trump told reporters on Tuesday that Americans may have to live with higher oil prices for a short period, “but as soon as this ends, those prices are going to drop, I believe, lower than even before.”
If higher energy prices persist, they could undermine efforts by lawmakers in Trump’s Republican Party to retain power in the congressional midterm elections in November.
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