Trump Says US Navy Will Escort Oil Tankers Through Hormuz

President Donald Trump announced that the US Navy will escort oil tankers through the Strait of Hormuz "as soon as possible" if necessary.

"Under no circumstances will the United States allow the free flow of global energy to be disrupted," Trump said on Truth Social on Saturday (local time). He added that he has ordered the US International Development Finance Corporation (DFC) "to provide insurance and guarantees at very reasonable prices for the security of all maritime trade passing through the Gulf, especially in the energy sector." He emphasized that "this will be available to all shipping lines."

On Friday, Iran's Islamic Revolutionary Guard Corps (IRGC) threatened to blockade the Strait of Hormuz, which handles 20% of global oil shipments, warning that "not a single drop of oil" would pass through.

Trump's announcement of naval escorts appears to be a direct response to the surge in Brent crude and West Texas Intermediate (WTI) prices following Iran's threat. The move to deploy the DFC is also interpreted as an effort to curb rising shipping and insurance costs for vessels passing through the Persian Gulf and the nearby Red Sea.

Brent crude futures, which had climbed to $84 per barrel, dropped sharply to the $78 range immediately after Trump's remarks. As of 3:50 p.m. Eastern Time (5:50 a.m. Korea Time on the 4th), Brent was trading at $80.75, up about 3% from the previous session. WTI was trading at $73.77 per barrel, up approximately 3.6%.