Trump Orders U.S. Agency to Backstop Maritime Trade in Persian Gulf as Insurers Withdraw
The President also indicated that there is the possibility of US Navy escorts for ships sailing through the Strait of Hormuz.
President Donald Trump has ordered the U.S. International Development Finance Corporation (DFC) to serve as a backstop insurer for maritime trade in and around the Persian Gulf and the Strait of Hormuz.
The mover offers political-risk-style coverage and guarantees for shippers, aimed at keeping oil and other cargo moving through the region.
“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, traveling through the Gulf. This will be available to all Shipping Lines,” Trump wrote on Truth Social.
The move comes as tensions with Iran escalate and fighting in the region raises concerns about the safety of oil tankers and other commercial vessels. The Strait of Hormuz — a narrow waterway between Iran and Oman — is one of the world’s most important oil routes, and any disruption there can quickly impact global energy prices.
Trump said the insurance would be available immediately to all shipping lines at what he described as a “very reasonable price,” helping companies manage the financial risks of operating in a conflict zone.
"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… If necessary, the United States Navy will begin… pic.twitter.com/pIJyFwL78j
— The White House (@WhiteHouse) March 3, 2026
Trump also indicated he would be willing to arrange for the US Navy to escort ships through the region.
He added that if it becomes necessary, the U.S. Navy will be tasked with escorting tankers through the Strait of Hormuz, a mission reminiscent of Operation Earnest Will (the “Tanker Wars”) in the late 1980s. During Earnest Will, participating foreign tankers were required to reflag into the U.S. registry to obtain protection.
“No matter what, the United States will ensure the free flow of energy to the world,” Trump promised. “The United States’ economic and military might is the greatest on earth.”
The policy is aimed at preventing a fresh surge in global energy prices as the U.S. signals it will sustain (and potentially expand) military operations against Iran. Brent crude (a type of crude oil from the North Sea fields used as a benchmark for oil pricing) has already climbed roughly 14% since the fighting began last weekend, and prices could rise further if major export routes and terminals remain disrupted or shut.
However, there is some intriguing background related to insurance, shipping, and the Strait of Hormuz, which the Iranians had intended to use as an economic weapon.
In the past few days, insurers have begun canceling policies due to the new conflict.
Marine insurers are cancelling war risk coverage for vessels and oil shipping rates are set to surge further after the widening Iran conflict left at least three tankers damaged, a seafarer killed and 150 ships stranded around the Strait of Hormuz.
…Companies including Gard, Skuld, NorthStandard, the London P&I Club and the American Club said their cancellations would take effect from March 5, according to notices dated March 1 on their websites.
War risk cover will be excluded in Iranian waters, as well as the Gulf and adjacent waters, according to the notices.
Skuld added in its notice that it was working on a buy-back option to reinstate cover.
Several of these entities are Lloyd’s of London market participants. Lloyd’s underwrites a significant portion of the world’s marine cargo. Maritime transportation and policy expert John Konrad theorizes that policy cancellations may be due to a lack of intelligence information, a consequence of the British government’s recent posturing and lack of support for US military bases.
So if Lloyd’s pricing advantage flows from MI6, and MI6’s best intelligence flows from the US… what happens when that data pipeline gets throttled?
All indications are that @Keir_Starmer was blindsided by the size and scope of the US/Israel strikes on Iran this weekend. That alone tells you something about the current state of transatlantic intelligence sharing.
And we know there has been serious anger in Washington over the UK’s decision to sell Diego Garcia, home to America’s most strategically important base in the Indian Ocean, to Mauritius.
It is not a huge leap to conclude that the submarine cables linking Langley to London have gone dark, or at minimum have been significantly throttled.
Trump may be planning to reshore marine insurance to the U.S., which seems like a wise idea based on what has been happening in the United Kingdom.
Marco after they tell him he’s in charge of the London ship insurance market now https://t.co/FD6FBLKV2d pic.twitter.com/WmbNDoNFaZ
— John Ʌ Konrad V (@johnkonrad) March 2, 2026
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Comments
Bugger me, another common sense arrangement that the intellectual Pygmies in the left will hate because it tempers prices going mental more then they would normally!!
I’ve said for a long time we needed to actually take and hold the land around that point so Iran (or any other player in the game) couldn’t hold ships hostage.
Richard Fernandez PJMedia aka wretchard offers his high quality analysis on xtwitter.
@wretchardthecat
So much is happening in Iran that the danger of “whoops! missed that” is real. Did you know that the Israel Defense Forces said it destroyed Min Zadai, a secret nuclear site near Tehran today …
Usually the UK steps up and organizes this. Many (most?) are British or Swiss companies that do business under English law. But the UK under Starmer is feckless. Maybe this is an opportunity to take this insurance business away from the UK.
I think that already happened.
I’m sure Kier is startled to find he is still in office.
The Parliament is not going to be happy that Starmer’s intransigence and poor decision making shut the UK out of critical intelligence that one would expect the USA to share with the UK. That lack of trust has to be a huge red flag.
Selling it?! They’re not selling it, they’re giving it away!
Wow, how stupid.
Can you imagine, for example, the US giving away the Panama Canal?
Nah. Never happen. Oh wait…
That was Jimmuh again as I recall. Only thing worse would have been if he deeded it to the Iranians.
no dont like it
we alraeady pay the price with the war itself
losing great american servicemen and women /injuried
the price of doing business in america is reaping allll that money
so you pay for it..you the companies
in fact…the prices going sky high then gives the population more incentive to demand an end to the war and then its up to the pols to decide
this would also further the maga intent to make america (more) self sufficient and not to allow anyone to curtail our own
lng fossil architecture for the fear of what happens when the mullahs are in control..that would be a direct blow to the whole dnc playbook
so agaiin,,no to djt doing this
Hey, moonmoth was asking for comments on this topic 🙂
We’ve escorted tankers before so this is nothing new. However we shouldn’t escort tankers to or from China. Let those global troublemakers escort their own tankers.