US President Donald Trump has announced that the US Navy could escort ships in the Middle East “if necessary” as tensions with Iran continue to disrupt global energy supplies.
The warning comes after threats from Iran to target ships moving through the Strait of Hormuz, one of the world’s most important oil transit routes. Nearly one-fifth of the global oil and gas supply passes through this narrow waterway between Iran and the United Arab Emirates.
In recent days, shipping traffic has nearly stopped as fears of attacks grow.
Iran Threatens Shipping in the Gulf
An Iranian official reportedly warned that Tehran could “set fire” to ships attempting to pass through the Strait. Reports also say Iranian military forces have fired on several vessels in the area.
The threats have caused panic across global energy markets. Around 200 crude oil and product tankers are currently stranded in the Gulf, according to data from Lloyd’s List Intelligence. Insurance companies have sharply increased premiums for vessels operating in the region, making shipments more expensive and risky.
Trump Offers Insurance and Naval Escort
In response, Trump said the US government would step in to help shipping companies. He ordered the United States Development Finance Corporation (DFC) to provide political risk insurance and guarantees at what he described as “a very reasonable price.”
The president said the goal is to ensure the “FREE FLOW of ENERGY to the WORLD.”
Trump also pledged that the US Navy would provide military escort to ships if needed and “as soon as possible.” He made the announcement on social media while global oil and gas prices continued to surge.
Shortly after his statement, oil prices eased slightly, suggesting that markets reacted positively to the promise of US support.
Experts Warn Risks Remain
Despite the announcement, shipping experts are not fully convinced that insurance and naval escorts will solve the problem.
Richard Meade, editor-in-chief of Lloyd’s List, said it is still unclear whether the US plan will be enough to calm fears among shipping companies.
He pointed out that in recent years, attacks by Houthi forces in the Red Sea led many companies to avoid the route entirely, even with US military involvement. Many firms chose longer and more costly shipping paths to reduce risk.
“There was never really a point at which insurance alone would have prevented ships from going through the Strait of Hormuz,” Meade said. He added that even naval escort does not guarantee safety.
Oil Prices and Global Impact
Analysts warn that if the disruption continues, crude oil prices could rise above $100 per barrel. Such an increase would likely push up petrol prices worldwide and add pressure to household budgets.
Although the United States has strong domestic oil production, experts say American consumers could still feel the impact if global prices remain high.
Trump admitted that oil prices may stay elevated “for a little while.” However, he defended the ongoing conflict involving Iran, saying “something had to be done” about the Iranian regime.
Speaking to reporters at the White House, he expressed confidence that prices would eventually fall. “As soon as this ends, those prices are going to drop, I believe lower than even before,” he said.
Growing Uncertainty in the Gulf
The situation in the Strait of Hormuz remains tense. With ships stranded, insurance costs rising, and military threats increasing, global energy markets are closely watching every development.
For now, shipping companies must decide whether US government insurance and potential naval escorts are enough to resume operations through one of the world’s most critical energy routes.
The coming days will likely determine whether energy supplies stabilize — or whether the crisis deepens further.
Christina Johnson is a proud born and raised Torontonian. Christina has worked as a journalist for nearly a decade having contributed to several large publications including the Yahoo News and the Financial Post. As a journalist for White Pine Tribune, Christina covers national and international developments.
