Treasury Secretary Scott Bessent and Energy Secretary Chris Wright are expected to present proposals that may include government-backed insurance support for oil tankers operating in high-risk zones.
| Photo Credit:
YORUK ISIK
U.S. President Donald
Trump will review a set of policy options on Tuesday aimed at
controlling energy prices amid the escalating Middle East
conflict, including a proposal for the government to help oil
tankers in the region obtain insurance, two sources said.
Global crude oil prices have spiked since Israeli and
U.S. forces began striking Iran over the weekend, leading to
fighting that has interrupted Middle East oil tanker shipments.
Treasury Secretary Scott Bessent and Energy Secretary Chris
Wright are expected to meet with Trump on Tuesday afternoon to
present a list of proposals to address the issue and finalize a
response, the sources said on condition of anonymity.
Trump has made lowering energy prices a centerpiece of his
economic messaging, arguing that cheaper fuel is key to easing
inflation and supporting consumer spending.
The war with Iran threatens to drive prices up, potentially
undermining Republicans’ efforts to retain power in the U.S.
midterm elections in November.
Oil shipments have been largely blocked through the Strait
of Hormuz, a narrow waterway between Iran and Oman through which
around a fifth of the world’s oil is shipped, with a number of
tankers damaged by strikes and others stranded.
Shipping companies and insurers have begun reassessing
their exposure to the region, with war-risk premiums rising
sharply and some providers scaling back or withdrawing coverage
altogether, industry sources say.
Those higher insurance costs – often passed on to
charterers and ultimately consumers – have made it more
expensive for tankers willing to risk transiting the area,
prompting some operators to delay voyages or seek alternative
routes.
U.S. support for tanker insurance is not unprecedented.
During the Iran-Iraq conflict in the 1980s, Washington reflagged
tankers and provided naval escorts when private insurers
withdrew coverage. After the September 11, 2001, attacks, the
U.S. issued insurance policies to keep shipping moving amid
elevated war-risk premiums.
Secretary of State Marco Rubio told reporters on Monday the
U.S. has a “program in place” to fight rising energy prices and
that it would be implemented by Wright and Bessent.
“Starting tomorrow you will see us rolling out those phases
to try to mitigate against that,” Rubio said, without providing
details.
The administration has been reluctant to tap the nation’s
Strategic Petroleum Reserve, but officials could signal as early
as Tuesday that they are prepared to use it if prices continue
to climb, one source said.
Published on March 4, 2026