What to know about the agency Trump says will insure ships in the Persian Gulf

As concerns over the global oil supply intensify, President Trump has pledged that a little-known U.S. government agency will step in to insure ships sailing through the Persian Gulf, a move he said will maintain the "free flow of energy" as the Iran war continues. Edited by Aimee Picchi In:

As concerns over the global oil supply intensify, President Trump has pledged that a little-known U.S. government agency will step in to insure ships sailing through the Persian Gulf, a move he said will maintain the "free flow of energy" as the Iran war continues.

The Trump administration has tapped the U.S. International Development Finance Corporation, or DFC, for the job, with the president noting on Truth Social that the agency will provide political risk insurance to "all shipping lines." Mr. Trump also said the U.S. Navy would escort tankers through the Strait of Hormuz, a key artery for global oil shipments, if necessary.

The decision comes as other global insurers have backed away from underwriting maritime trade activity in the Gulf amid concerns that vessels could become collateral damage in the Iran war. Insurers such as NorthStandard, the London P&I Club, and the American Club have issued notices in recent days that they are suspending insurance for ships traveling through Iranian waters and the Gulf due to escalating risks from the war.

Disruptions to oil shipments are already driving up oil prices and pushing up costs at the gas pump.

Here's what to know about the DFC and what the agency's insurance promises could mean for American taxpayers.