"We'll make a series of announcements. This started yesterday, when we said that the U.S. International Development Finance Corporation (DFC) would provide insurance for both oil and cargo ships operating around the Gulf this weekend", Bessent said on CNBC March 4.
These statements are given in the market context that remain insecure after the conflict at the Middle East escalated. The world is increasingly concerned about the possibility of interrupting the oil flow through the Hormuz Sea - the shipping gland handling about 20% of global crude oil.
Get out! [The oil passes through the Hormuz Sea through December 2018. Image: Reuters](htttts
- Oil oil passes through the Hormuz Sea, December 2018. Image: Reuters*
After Bessent's statement, American crude oil has first dropped since the conflict in the Middle East occurred. Each barrel of WTI now loses $1.1% to 73,7 dollars a barrel. Brent oil dropped 0.7% to 80,8 dollars.
President Donald Trump of March 3 said that the US would provide insurance for oil carriers operating in the Gulf Area, in order to maintain shipping through the Hormuz Channel. This announcement recaptured the rise of the world's crude oil prices and at the same time narrowed the US stock market to the end of the session.
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Trump said that DFC would "subscript political and bail insurance, at a very reasonable price", intended to secure financial safety for maritime operations in the Gulf Area. "US government will intervene. If necessary, the US Navy will secure the corridor through the Channels for tankers", Bessent said.
This week, the US WTI oil prices increased 11% to 74,62 dollars per barrel, raising the rate from early 2026 to 30%. Investors who are concerned about conflicts in the Middle East spread can cause long-term interruptions with oil and gas supply in the area. Communicators at Wall Street warned the price of oil could exceed $100 per barrel if the Hormuz Sea Ego was closed for a long time.
Bessent also assured himself of the energy shock. He claims the oil market is now fully supplied, despite increased tensions in the Middle East. "This is the political geopolitical event predicted. The raw oil market has been significantly transformed over the past two months and is currently well supplied," he said.
Bessent states that American officials still maintain contact with the countries producing energy through the International Energy Agency (IEA), and at the same time emphasize the magnitude of strategic oil reserves worldwide. He remarked that the United States is in a far stronger position than the early stages of the Russian - Ukrainian conflict. The natural production of oil and gas in the country reached a record level and the United States also increased its role as major export water on crude oil and liquid gas (LNG).