US President Donald Trump has said the United States will offer federally-backed insurance coverage for maritime trade in the war-affected area of the Middle East.

The political risk insurance and financial guarantees will be offered through the US Development Finance Corporation, Mr Trump announced via social media.

The president’s move comes as private insurers either cancel war risk coverage for ships operating in the Persian Gulf and the surrounding area, or repriced sharply higher to reflect greater risk, after the conflict involving Israel, Iran and the US, started on Saturday.

Shipping activity in the region has largely come to a halt, with serious ramifications for global energy markets, since about one-fifth of the world’s oil and gas supply is shipped through the Strait of Hormuz.

Mr Trump said the DFC will “provide, at a very reasonable price, political risk insurance and guarantees” for the financial security of all maritime trade through the Gulf.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,” the president posted, adding: “No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD.”

Yesterday, US Treasury Secretary Scott Bessent confirmed that the coverage would apply to cargo vessels, as well as oil tankers, and that details would go out to insurance brokers and ship owners in the coming days.

Marcus Baker, global head of marine and cargo at global insurance broker Marsh, said, in comments reported by the Associated Press: “We have spoken with the DFC earlier today and offered our assistance with the potential facility.” He added that it “might take a few weeks to work out the details” of any programme.

In an interview aired by CNBC, Mr Bessent said the crude oil markets were “very well ⁠supplied”. He added: “There ​are hundreds of millions of barrels on ​the ​water away from the Gulf. But ‌more importantly, we have a series of announcements that we’re going to be making.”

Jens Alers, a Bermudian-based independent maritime consultant, citing a March 2 update from Clarksons Research, a shipping data provider, said there were an estimated 3,200 vessels in the Persian Gulf, including 112 crude tankers, 114 container ships and 241 bulkers.

The DFC’s normal function is to mobilise private capital to developing nations and to lower risk for investments in poor countries. Political risk insurance helps cover losses due to war, violence and other political turmoil.