The Trump administration is providing ship reinsurance — $20 billion on a rolling basis — so that shipping companies operating in the Gulf region can be insured against financial losses caused by unstable political conditions, government actions or violence, the US International Development Finance Corp. said on Tuesday.

Military escorts could reopen the Strait of Hormuz for oil and natural gas shipments and reduce a global supply shortage created by the Iran war. US President Donald Trump has said the US Navy would escort oil tankers through the strait if necessary. But those escorts haven’t happened yet, the White House said.

There are currently about 400 oil and product tankers idle in the Gulf, and one oil tanker passed through the Strait of Hormuz without incident on Monday, according to data from MarineTraffic, a project that tracks the movement of vessels around the globe using publicly available data.

The US president said he has no reports of Iran putting explosive mines in the strategic waterway. But if Tehran did, “we want them removed, IMMEDIATELY!” he posted on social media.

“If for any reason mines were placed, and they are not removed forthwith, the Military consequences to Iran will be at a level never seen before,” Trump wrote.

The concern is that mines could make it impossible for tankers to pass through the strait, which could cause oil and natural gas prices to rise. Trump has been sensitive to higher energy prices as a domestic political issue, as his economic argument to voters is based on keeping gasoline costs low.

A fifth of the world’s oil passes through the strait, which is only about 33 kilometers wide at its narrowest point.

Trump also claimed that the US military “completely destroyed” 10 inactive Iranian mine-laying vessels after reports of Iranian action in the Strait of Hormuz.

And in his social media post, he added that there would be “more to follow.” 

Angry Neighbors
Meanwhile, the UN Security Council will convene to demand a vote on demanding Iran stop attacking its Arab neighbors.

The draft resolution condemns Iran’s attacks on Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates and Jordan. The measure calls for an immediate end to all strikes and threats against neighboring states, including through proxies.

A vote has been scheduled for Wednesday afternoon, three diplomats said, speaking on condition of anonymity ahead of an official announcement.

The draft, sponsored by Gulf Cooperation Council members, would be the first Security Council resolution considered since Israel and the United States launched airstrikes on Iran and Tehran responded with attacks against Israel and across the region.

The Qatari Defense Ministry says it intercepted another missile attack from Iran. Earlier in the day, Qatar said it intercepted five Iranian ballistic missiles launched, with no casualties or damage reported.

The defense ministry of Bahrain, home to the US Navy’s 5th Fleet headquarters, said it has intercepted 105 ballistic missiles and 176 drones since the war began. One hit a residential building in Bahrain’s capital, Manama, killing a 29-year-old woman and wounding eight others, the Interior Ministry said.

The United Arab Emirates’ Defense Ministry said nine drones hit the country on Tuesday, while it intercepted eight missiles and 26 drones, and that the attacks have killed six people and injured 122 others.