00:00The Strait of Hormuz handles about a quarter of the world's seaborne oil trade,
00:04and about a fifth of the world's supply of LNG.
00:06Now, the U.S.-Israeli strikes on Iran have effectively paralyzed it.
00:11Almost no ships are entering or exiting the strait.
00:14This means higher oil and gas prices, which will only push up inflation.
00:18To stave off a potential energy crisis, President Donald Trump pledged this.
00:23Get the U.S. Navy to escort the ships through the waterway
00:26and insure them at a very reasonable price.
00:29But is the global shipping community biting?
00:32The industry is facing news of tankers getting hit, crew deaths, and higher insurance costs.
00:38Marine insurers, ship owners, and traders say Trump's offer does give them some form of comfort,
00:44but they remain skeptical without seeing details.
00:47First, the U.S.-backed premiums would have to be competitively cheaper.
00:51As it stands, risks have escalated to the point where some major insurance associations
00:57are pulling some of that cover, offering to renegotiate those premiums higher.
01:02Then comes the question of risk.
01:04Moving costly vessels and their cargo requires quite a bit of confidence,
01:08and it's unlikely that Trump's promises make it much safer for ship owners to engage in the trade,
01:15at least in the near term.
01:16The risk to vessels and marinas is very real, given the continued strikes.
01:20The number of escorts is also limited.
01:23For now, the global shipping community is just waiting to see the fine print,
01:27while continuing to make plans to get oil, gas, and other cargoes out of the Gulf safely.
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