Shipping slows to a crawl through Strait of Hormuz, threatening to snarl international trade
To keep cargo flowing, President Donald Trump said in a Truth Social post on Tuesday that the U.S. Navy would start “escorting tankers through the Strait of Hormuz” if necessary. But since then, traffic has remained at a near standstill, and it’s unclear if any tankers have taken the government up on its offer. “Naval escorts would help reduce the threat for the ships being protected,” said Jakob Larsen, chief safety and security officer at global shipping organization BIMCO. “That said, providing protection for all tankers operating in areas currently threatened by Iran is unrealistic as this would require a very high number of warships and other military assets.” More than 150 vessels, including oil and liquid natural gas tankers, have been forced to anchor or reroute, causing significant operational challenges, according to insurance broker Marsh Risk. Insurers are canceling coverage under war risk policies, causing a coverage gap that is spiking the cost of safe passage. Marsh said that rates have surged from 0.25% to 1.25% of the value of the ship as of …




