In an effort to halt the energy supply shortage brought on by the US-Israel war with Iran, US President Donald Trump has declared that the nation’s military will defend ships in the Middle East “if necessary”.
The Strait of Hormuz, a tiny waterway sandwiched between Iran and the United Arab Emirates, carries a fifth of the world’s oil and gas, but since Iran threatened to “set fire” ships, commerce has virtually completely stopped.
According to Trump, in order to “ensure the FREE FLOW of ENERGY to the WORLD,” the US government will offer risk insurance “at a very reasonable price” to any shipping companies operating in the area. Experts caution that these guarantees might not be sufficient to allay businesses’ worries.
As oil and gas prices continued to rise globally, Trump made the announcement on social media, raising concerns about how it might affect household prices. The Iranian military has reportedly shot at multiple ships in the vicinity, and an Iranian official vowed to “set fire” to any ship attempting to cross the Strait of Hormuz on Monday.
Since then, some insurance providers have increased the cost of their policies for ships operating in the area. According to Lloyds List Intelligence, there are currently about 200 tankers carrying crude oil and products trapped in the Gulf.
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