President Trump announced that the U.S. Development Finance Corporation will provide political risk insurance and guarantees for ships transiting the Strait of Hormuz, with the U.S. Navy prepared to escort tankers through the critical waterway. The president said insurance and guarantees will be available to all shipping lines at reasonable rates, especially for energy shipments.

Trump stated the U.S. will ensure the free flow of energy to the world, citing America's economic and military strength. The announcement comes as conflict between the U.S., Israel and Iran has disrupted traffic through the strait, which carries roughly one-fifth of global oil consumption and large quantities of natural gas. Shipping has nearly stopped as fighting intensified.

Iran declared the strait closed and threatened to attack ships passing through. At least five tankers have been damaged and two personnel killed, with about 150 ships stranded around the strait that separates Iran and Oman. Several major shipping companies have halted operations in the area. Oil prices have risen dramatically since the conflict began, with futures trading above $77 at one point before pulling back to around $73.