Transportation Secretary Sean Duffy said Sunday that the Trump administration has a plan prepared to insure ships traveling through the Strait of Hormuz but is still waiting for military officials to determine when it is safe to begin escorting vessels through the contested waterway.
Appearing on Sunday Morning Futures with Maria Bartiromo, Duffy said the administration is ready to implement an insurance mechanism intended to encourage oil shipments through the critical shipping lane once naval escorts are authorized.
Dufffy said the insurance component is already prepared but the timeline for escorts depends on the Pentagon’s security assessment.
“We’re ready on the insurance front, that’s ready to go,” Duffy said. “It’s General Cain making an analysis on when is it safe to do those escorts. Then it’ll go. Could be [a] day. Could be a week”
The remarks come as the United States and its allies seek to stabilize global energy markets after the war in Iran disrupted shipping through the Strait of Hormuz, a narrow waterway between Iran and Oman that carries roughly one fifth of the world’s oil supply.
President Donald Trump on Saturday said that a multinational group is sending warships to defend the Strait of Hormuz from Iranian military forces blockading the crucial waterway. The Islamic Revolutionary Guard Corps started to cut off the strait after the first U.S.-Israeli joint attacks on Feb. 28.
Iran has threatened commercial vessels in the area and launched attacks using drones and fast boars as the conflict with the United States and Israel enters its third week.
United Nations Ambassador Mike Waltz also addressed the situation Sunday during an appearance on CNN’s State of the Union, and said the U.S. is urging national partners to help secure the waterway.
“I think that’s what President Trump is calling upon the world, saying the entire world is affected,” Waltz said. “Iran can’t hold our economies hostage.”
Waltz also pointed out that the majority of oil shipped through the Persian Gulf is destined for Asian markets, underscoring why multiple countries have a stake in protecting the route.
He also referenced historical precedent for multinational escorts during the 1980s “Tanker War,” when naval forces from several countries helped protect oil shipments amid Iran-Iraq hostilities.
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The Trump administration has argued that protecting shipping lanes is critical to preventing Iran from disrupting global energy markets as the broader military campaign continues.
Duffy said the administration expects oil flows to resume more normally once escorts and insurance are in place.
