• President Trump orders insurance for maritime trade to counter rising oil prices amid ongoing hostilities with Iran.
• The US Navy could begin escorting oil tankers through the Strait of Hormuz if needed.
• Oil prices have surged over 15% since the US-Israel campaign against Iran commenced.

President Donald Trump announced on March 3 that the United States Development Finance Corporation (DFC) will provide political risk insurance and financial guarantees to support maritime trade, particularly for energy shipments through the Gulf, amid increasing tensions with Iran. Trump's directive aims to enhance the financial security of global maritime trade and was prompted by the escalating conflict which has impacted shipping operations in the region, according to aa and aljazeera.

In his announcement, Trump emphasized that the US Navy may begin escorting tankers through the Strait of Hormuz if necessary, a vital route for global oil supply where threats to maritime traffic have surged. He stated, "No matter what, the United States will ensure the free flow of energy to the world," signifying a robust military and economic response to the conflicts affecting the region, according to indiatimes and channelnewsasia.

Trump's announcement comes as oil prices have jumped significantly—over 15% since military operations began against Iran, with Brent crude touching levels not seen since prior geopolitical crises. The tensions have led to many insurers withdrawing coverage, thereby complicating the logistics and economics of shipping oil through the Strait, which carries roughly 20% of global oil supply, according to bbc and indiatimes.

The DFC's role is crucial as it is expected to provide affordable insurance to encourage shipping operations amid rising geopolitical risks. Trump indicated that further actions would be announced and that he intends to keep energy flowing despite current challenges, reflecting the administration's approach to stabilize the market, as noted by multiple sources including aa, channelnewsasia, and bbc.

Despite the measures proposed, experts remain skeptical about whether insurance and potential naval escorts will suffice to guarantee safety in the vital shipping corridor, especially considering Iran's ongoing military actions. Concerns about prolonged disruptions are prevalent as some shipping lines are reevaluating their risks, and insurance costs continue to rise, leading to delays in oil shipments, according to aljazeera and channelnewsasia.