economy
March 4, 2026
Trump offers assistance to oil shippers to halt price spike from Iranian threat
President Donald Trump unveiled a plan to restart transportation of oil and gas through the Strait of Hormuz and stanch the surge in energy prices brought on by the Iranian response to the strikes carried out by the United States and Israel over the weekend.
TL;DR
- President Trump has ordered the U.S. Development Finance Corporation (DFC) to provide political risk insurance and guarantees for maritime trade, especially energy, traveling through the Gulf.
- This plan includes offering financial and logistical help, such as Navy escorts, to shippers navigating the waters around Iran.
- Crude oil prices have surged by nearly 8% following U.S. and Israeli attacks on Iran and Iran's threat to close the Strait of Hormuz.
- The Strait of Hormuz is a critical chokepoint for global oil trade, with approximately 20 million barrels passing through daily.
- Shipping data showed traffic through the strait dropped to zero as vessels changed course due to threats from the Iranian Revolutionary Guard Corps.
- Analysts warn that a prolonged closure of the Strait could send oil prices into triple digits.
- Rising oil prices have led to a significant hike in gasoline prices, with the national average reaching $3.109 per gallon.
Continue reading the original article