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Markets Steady as U.S. Signals Protection for Hormuz Shipping
Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the U.S.-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026
Global markets showed signs of relief after President Donald Trump indicated that the United States is prepared to safeguard oil and gas shipments passing through the Strait of Hormuz, a critical chokepoint for global energy flows. His assurances came amid heightened tensions in the Middle East, where recent conflict had sharply disrupted tanker traffic and driven up energy prices.
Oil shipments through the strait had nearly halted due to fears of attacks and soaring war‑risk insurance costs, prompting concerns about supply shortages. Trump stated that the U.S. may deploy Navy escorts and provide political risk insurance and financial guarantees to ensure safe passage for commercial vessels. These measures helped calm market volatility and stabilize crude prices, which had surged following regional escalations.
The Strait of Hormuz handles roughly one‑fifth of the world’s oil and LNG shipments, making any disruption immediately felt across global markets. By signaling a willingness to intervene, the U.S. aimed to restore confidence among shippers and energy traders, easing fears of prolonged supply interruptions.
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