U.S. Navy to escort oil tankers through Strait of Hormuz when possible, Bessent says Treasury Secretary Scott Bessent confirmed on Thursday that the U.S. Navy will begin escorting oil tankers through the Strait of Hormuz as soon as "militarily possible," during an interview with Sky News. Bessent emphasized that this measure was part of the administration’s long-term planning, stating that the possibility of naval escorts—either by the U.S. or an international coalition—had been considered from the outset. The decision comes amid heightened tensions in the region, with Iran’s new supreme leader, Mojtaba Khamenei, declaring that the Strait of Hormuz should remain closed as a "tool to pressure the enemy." Khamenei’s remarks underscore the strategic significance of the waterway, which is a critical artery for global oil shipments. Bessent, however, asserted that the U.S. has "complete control of the skies" and that Iran’s naval forces are "literally and figuratively sunk," reflecting the administration’s confidence in its military superiority. Energy Secretary Chris Wright, meanwhile, told CNBC that the Navy is not yet prepared to escort tankers through the strait. Wright acknowledged that the operation "will happen relatively soon" but emphasized that current military resources are focused on dismantling Iran’s offensive capabilities and its industrial infrastructure. This highlights a potential gap between the administration’s strategic goals and the operational readiness of its forces. President Donald Trump had previously called on oil company CEOs to send tankers through the Strait of Hormuz, framing the move as a necessary step in countering Iran.#iran #strait_of_hormuz #mojtaba_khamenei #chubb #treasury_secretary_scott_bessent
Chubb set as main U.S. insurer for Persian Gulf shipping amid Iran war Insurance giant Chubb has been designated as the lead underwriter for a U.S.-government-backed insurance program aimed at restoring maritime trade through the Strait of Hormuz, a critical waterway for global oil shipments. The initiative, led by the U.S. Development Finance Corporation (DFC), seeks to address the disruption caused by the ongoing conflict with Iran, which has deterred ships from transiting the narrow strait. The program will provide coverage for up to $20 billion in damages on a rolling basis, targeting risks such as war-related incidents, hull and machinery damage, and cargo loss. The Strait of Hormuz, a vital artery connecting the Persian Gulf to the Arabian Sea, has seen a significant decline in oil traffic since the conflict escalated at the end of February. Normally, the strait handles approximately 15 million barrels of oil per day, but this flow has stalled due to heightened security concerns. Ship crews are reluctant to navigate the route, fearing attacks, following reports of projectiles striking three vessels off Iran’s coast. The DFC’s program aims to incentivize resumption of shipping by offering financial protection to operators, though experts note that insurance alone may not fully resolve the issue of crew safety. Oil prices have surged in response to the crisis, with Brent crude trading above $91 per barrel. Despite an announcement by the International Energy Agency (IEA) to release 400 million barrels from strategic reserves, prices have remained elevated. IEA chief Fatih Birol highlighted the strait’s critical role in global energy supply, emphasizing that its disruption has had far-reaching economic implications.#strait_of_hormuz #international_energy_agency #fatih_birol #chubb #us_development_finance_corporation
