Washington considers insurance guarantees for tankers passing through Hormuz

The administration of US President Donald Trump is weighing whether to provide military protection to oil and gas tankers passing through the Strait of Hormuz as energy prices surge amid escalating conflict with Iran, three people familiar with internal discussions told Politico.

One person briefed on the talks said the option under consideration includes deploying US naval vessels to escort commercial ships through the strategic waterway. “Military support for oil and gas supplies,” the source said, describing the concept. The same source warned that energy markets could face mounting pressure in the coming days as the military campaign intensifies and expands geographically. Access to the strait is critical for global shipments of crude oil and liquefied natural gas, particularly exports from Qatar and Saudi Arabia.

US oil prices have climbed nearly $10 per barrel since the end of last week as fighting has continued. The increase is beginning to feed into gasoline prices, which are on track to exceed levels seen when Trump took office last year.

A third person familiar with the matter said the administration is also considering whether the US government should backstop maritime insurance for tankers operating in the strait. Although the waterway remains formally open, insurers have sharply raised premiums and, in some cases, withdrawn coverage for vessels transiting the area.

A former defence official said the Pentagon is engaged in ongoing discussions about a maritime mission similar to prior Defence Department operations in the Red Sea, where US aircraft carriers and destroyers were deployed to safeguard freedom of navigation amid threats from an Iran-linked group.

A White House spokesperson confirmed that Trump is meeting with his Energy and Treasury secretaries and said further details would be provided after those discussions.

The deliberations mark the first clear indication that the administration is treating the spike in oil, natural gas and fuel prices as a serious policy concern. Prices began rising after US-Israeli strikes on Saturday that killed Iran’s supreme leader and triggered a broader regional war.

The expanding conflict has already resulted in six American service members killed and attacks against the US embassy in Saudi Arabia. Energy infrastructure has become a central target: Qatar shut down a major natural gas export facility, Saudi refineries have been attacked, and Iran has fired on vessels navigating Hormuz — a corridor that handles roughly 20 per cent of the world’s seaborne oil shipments.

The US military says it has sunk 11 Iranian vessels since the joint operation with Israel began Saturday. As a result, any new mission would likely concentrate on intercepting Iranian missiles aimed at civilian shipping rather than deterring naval incursions. Such a strategy could further strain US air defence interceptor stockpiles, already depleted by operations against Yemen’s Houthis and Israel’s 12-year conflict with Iran last year.

By Tamilla Hasanova