"Providing Political Risk Insurance and Guarantees"
U.S. President Donald Trump has announced that he will provide military protection for oil tankers passing through the Strait of Hormuz in response to Iran's threat to blockade the strait.
On the 25th of last month, U.S. President Trump's State of the Union address was broadcast on a TV in the waiting room of Seoul Station, Yongsan-gu, Seoul. Photo by Yonhap News
On March 3 (local time), President Trump stated via the social networking service Truth Social, "If necessary, the U.S. Navy will begin escorting oil tankers through the Strait of Hormuz as soon as possible."
He also said, "Effective immediately, I have directed the U.S. International Development Finance Corporation (DFC) to provide political risk insurance and guarantees for all shipping passing through the Gulf region, especially for energy transport, at very reasonable prices."
President Trump emphasized, "Under any circumstances, the United States will ensure the free flow of energy to the world."
Donald Trump, President of the United States, stated on the 3rd (local time) through the social networking service Truth Social, "If necessary, the U.S. Navy will begin escorting oil tankers through the Strait of Hormuz as soon as possible." Trump on Truth Social
With U.S. military operations against Iran continuing for a fourth consecutive day and Iran's counterattacks, military tensions around the Strait of Hormuz-which is responsible for approximately 20% of the world's crude oil shipments-have reached their peak.
President Trump's announcement on this day is interpreted as a signal that the United States is willing to deploy military power to directly defend international energy shipping lanes against Iran's threat to blockade the Strait of Hormuz.
However, since President Trump premised his remarks on "if necessary," the timing of when U.S. forces might actually begin escort operations for oil tankers in the Strait of Hormuz remains uncertain.
Regarding international oil prices, President Trump said at the White House on the same day, "Oil prices might be a bit high for a while, but as soon as this situation is over, they will go down, and I even think they could drop lower than before."
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