by WorldTribune Staff, March 3, 2026 Real World News
President Donald Trump on Tuesday announced that the United States Development Finance Corporation (DFC) will provide insurance for all oil and gas tankers traveling through the Strait of Hormuz.
In a post to Truth Social, the president wrote:
“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.
“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible. No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD. The United States’ ECONOMIC and MILITARY MIGHT is the GREATEST ON EARTH — More actions to come. Thank you for your attention to this matter!”
The Strait of Hormuz is the narrow mouth of the Persian Gulf through which about a fifth of the world’s oil passes.
Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran. Most of that oil goes to Asia.
Any disruption to traffic through the Strait of Hormuz is highly disruptive to the oil trade.
It connects the Persian Gulf to the Gulf of Oman. From there, ships can then travel to the rest of the world. While Iran and Oman have their territorial waters in the strait, it’s viewed as an international waterway all ships can ply.
Chinese Foreign Ministry spokeswoman Mao Ning said at Tuesday’s regular press briefing in Beijing that all parties in the Iran conflict must ensure the safe transit of commercial shipping through Hormuz.
“China urges all parties to immediately cease military operations, avoid escalating tensions, and safeguard the safety of navigation in the Strait of Hormuz,” spokeswoman Ning said.
China is addicted to cheap Iranian crude exports. About 80% of Iran’s oil exports – about 1.6 million barrels per day – go to China.
The latest AIS shipping tracking data via Bloomberg showed the Strait of Hormuz had been paralyzed, with Iran’s Revolutionary Guards commander threatening fire and destruction to any ship that transits the narrow waterway.
U.S. and Chinese trade negotiators are expected to meet in mid-March, according to Bloomberg, ahead of a planned Trump-Xi Jinping summit.
While prices are fungible, the biggest loser from a Hormuz closure in terms of actual physical oil is China which is the main destination of the 13.1mm barrels of oil that passes through the Strait every day https://t.co/FwWVsHiwpZ pic.twitter.com/ozXwXpo2El
— zerohedge (@zerohedge) March 1, 2026
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