Global oil prices inched higher after US President Donald Trump announced new measures to protect vessels moving through the Strait of Hormuz, a critical route for global energy shipments. Brent crude gained modestly in early Asian trade as the announcement eased some of the market’s recent anxiety following sharp price spikes.
Trump said the United States will offer political risk insurance and, if needed, provide US Navy escorts for tankers and commercial vessels. These steps aim to support shipping companies after heightened regional conflict disrupted flows and pushed prices sharply higher.
Trump stated that the US International Development Finance Corporation will offer insurance for vessels at what he called a “reasonable price.” The insurance will apply to maritime trade in the Gulf, especially energy shipments. He said the US intends to ensure the free movement of oil and related cargo through the region.
Oil prices had risen more than 15% in the two previous sessions as carriers slowed or halted traffic through the strait. Many operators increased caution after Iran’s Revolutionary Guard Corps warned that vessels attempting passage risked being set ablaze. Reports indicated that several tankers suffered damage and that about 150 ships remained stranded near the waterway.
Brent crude climbed to $82.77 per barrel during early trade before easing to $82.08, which marked an increase of about 0.84% from the prior close. West Texas Intermediate traded near $75.05, up 0.66%. Analysts said the US announcement helped moderate immediate market fears, although the situation remains fluid.
The Strait of Hormuz serves as the transit point for roughly one-fifth of global oil and LNG shipments each day. Any disruption there affects buyers across Asia, Europe, and North America. The conflict raised insurance costs for tankers and forced shipping companies to reassess their transit routes.
Oil makes up a major share of India’s import basket, and about half of its crude supply moves through the Gulf. A sustained increase in global oil benchmarks would raise import expenses and widen India’s current account deficit. Government estimates show that a $1 increase in crude prices over a full year adds about ₹16,000 crore to India’s import bill.
Notably, Indian officials said state-run refiners currently hold crude inventories for roughly 25 days, with an additional 25 days of petrol and diesel. India also holds about 25 days of cooking gas and up to 21 days of LNG supplies. Moreover, the Petroleum Ministry activated a 24×7 control room to track stocks and shipping schedules.
The president’s announcement briefly trimmed the risk premium in oil markets. However, traders expressed doubt that the measures would immediately restore shipping activity. They said the ability of the US Navy to escort tankers depends on the evolving conflict and the level of threat from mines, missiles, and drones in the region.
Energy analysts noted that any return to normal transit may take weeks. They said companies will decide on insurance based on pricing and perceived security levels. They added that consistent uptake of the program could signal growing confidence in regional stability.
Oil markets remain sensitive as conflict continues across the Middle East. The US aims to support shipping and limit fuel price increases at home, where gasoline prices already reached five-month highs.
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