"Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf. If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible."
"The Strait of Hormuz is a vital trade artery that connects the Gulf to the Indian Ocean. Around 20 percent of the world's oil flows through it. The price of oil has shot up by more than 15 percent since the US and Israel launched strikes on Tehran that started a war with Iran three days ago."
"Some insurance companies were reported to have cut back coverage amid the Iranian attacks. Although the US is largely self-sufficient with its oil production, an uptick in prices globally could hike the cost for Americans at the gas or petrol pump, and could boost inflation."
President Trump announced that the United States Development Finance Corporation will immediately offer political risk insurance and guarantees for maritime trade through the Gulf at reasonable prices. The US Navy will escort tankers through the Strait of Hormuz if necessary to ensure uninterrupted energy flow. This response follows Iran's closure of the strategic waterway and attacks on Gulf energy installations, which have caused oil prices to surge over 15 percent. The Strait of Hormuz handles approximately 20 percent of global oil supplies. Insurance companies have reduced coverage due to Iranian attacks, creating market gaps the US government aims to fill. While the US maintains oil self-sufficiency, global price increases threaten American consumers through higher gas prices and potential inflation.
Read at www.aljazeera.com
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