US considers naval escorts for oil tankers in Strait of Hormuz

The U.S. is considering new ways to protect oil shipments through the Strait of Hormuz amid escalating conflict with Iran. President Donald Trump said that these could include government-backed insurance and naval escorts for tankers, Reuters reported.

According to the president, the U.S. International Development Finance Corporation (DFC) has been instructed to offer political risk insurance and financial guarantees to shipping companies working in the Gulf. He also said the U.S. Navy could escort commercial ships through the area if needed for security.

These measures are meant to keep oil moving through the Strait of Hormuz, a narrow waterway between Iran and Oman that carries about one-fifth of the world’s oil.

Missile strikes by Israel and the U.S. on Iran and retaliatory hits of multiple locations across the region by Iran have significantly increased security risks and disrupted tanker traffic. Oil prices have risen as some tankers have been damaged in the conflict, while others have opted to stay at a safe distance.

The U.S. has used similar measures in maritime crises in the past. In the 1980s, during the Iran-Iraq war, Washington reflagged Kuwaiti oil tankers and gave them naval escorts after insurers pulled out. After the September 11 attacks, the U.S. government also temporarily supported maritime insurance to keep shipping going.