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Trump's Tanker Escort Plan Risks Gulf Oil Supply Disruption

Financial Times Markets •
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US President Donald Trump stated the Navy is ready to escort oil tankers through the Strait of Hormuz, aiming to calm energy markets after Iran attacks. Trump's announcement came as the US military reported hitting nearly 2,000 Iranian targets, sinking 17 naval ships including a key submarine. Experts caution this escort operation won't start immediately, likely taking at least a week and requiring further strikes to suppress Iranian anti-ship capabilities. Oil prices surged 4.7% on Tuesday, hitting $81.40 a barrel, though they trimmed gains after Trump's tanker plan, reflecting market uncertainty over potential supply disruptions.

The conflict has already triggered US travel warnings to Oman and prompted Qatar to arrest 10 suspects linked to Iran's Revolutionary Guard, while Bahrain detained individuals celebrating the attacks. The widening conflict has also rattled Asian and US stock markets, with South Korea's Kospi plunging 5.7%.