United States President Donald Trump announced that the United States Development Finance Corporation (DFC) will provide insurance for all oil and gas tankers traveling through the Strait of Hormuz in a post on Truth Social on Tuesday.
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Trump added that if necessary, the US Navy will begin escorting tankers through the strait.
"No matter what, the United States will ensure the free flow of energy to the world," he asserted.
Trump's announcement comes after Iran’s military announced that the Strait of Hormuz, one of the world’s most essential oil export routes, will be closed and that any ships that approach it will be set on fire.
Ebrahim Jabbari, a senior adviser to the commander-in-chief of the Islamic Revolutionary Guard Corps (IRGC), said: “The Strait [of Hormuz] is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze.”
On Saturday, the Islamic Revolutionary Guard Corps said the route had been closed, though the earlier statement did not include the explicit warning to attack passing vessels.
“The ATHE NOVA tanker, one of the American allies in the Strait of Hormuz, is still on fire after being hit by two drones,” the Guards said in a statement.
The narrow waterway between Oman and Iran is a critical artery for global energy supplies. In 2025, roughly 13 million barrels of oil moved through the channel each day, accounting for about 31% of the world’s seaborne crude shipments, according to energy intelligence firm Kpler.
An extended shutdown could push oil prices significantly higher, with some analysts projecting prices above $100 per barrel. Global benchmark Brent crude was up 2.6% at about $80 per barrel, nearly 10% higher since the conflict began.
Iran described the closure as retaliation for a joint US-Israeli military operation following the breakdown of nuclear talks.
US considering protecting oil tankers
Earlier on Tuesday, Politico reported that the US was considering providing military protection to tankers attempting to travel through the strait.
Two sources familiar with the situation stated that energy market pressures that may result from the restriction of the strait are a "growing concern."
"Access to the Straits of Hormuz is obviously vital for both natural gas and crude oil shipments, especially from Qatar and Saudi Arabia,” one of the sources told Politico.
Another option weighed by the US was potentially backing insurance policies necessary for oil and gas tankers to continue moving through the strait, an additional source added.