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US President Donald Trump has ordered the Development Finance Corporation (DFC) to provide political risk insurance and financial guarantees for all maritime trade passing through the Gulf.

The directive, posted on the social media platform Truth Social, is effective immediately and aims to stabilise the soaring costs of shipping and insurance for energy exports passing through the Strait of Hormuz.

“I have ordered the [DFC] to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy travelling through the Gulf,” Trump said.

He added that these services would be available to all international shipping lines.

Trump also said that the US Navy is prepared to resume the escorting of commercial tankers through the Strait of Hormuz – a move reminiscent of “Operation Earnest Will” during the late 1980s.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,” the statement read. “No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” he said.

The announcement comes at a time of heightened scrutiny over the security of the Strait of Hormuz, a vital chokepoint through which approximately one-fifth of the world’s total oil consumption passes.