Shippers and Oil Traders Seek Details on Trump’s Convoy Plan
Bloomberg Businessweek
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Traders were on Wednesday awaiting further details of President Donald Trump’s plan to guarantee the free flow of energy shipments through the Persian Gulf, as the shipping industry warned the proposal may struggle to restore confidence after attacks effectively shut the Strait of Hormuz.
The disruption threatens to sever seaborne energy trade between some of the world’s largest producers and key consuming nations, heightening risks for global markets. Brent crude was little changed after jumping more than 10% this week, while European gas prices slipped following the biggest rally in four years.
Trump said Tuesday the US would offer insurance backstops and naval escorts for commercial vessels transiting the region, seeking to reassure markets rattled by a spiraling conflict involving Iran. Multiple attacks on vessels in recent days have choked off traffic through the narrow waterway.
The world’s largest shipping industry association said it was seeking clarification on how the US-led convoy system would operate, warning that protecting every tanker in the region would be “unrealistic.” Officials at two major commodity trading houses said they doubted the measures would materially reduce the danger of attack, even with military escorts in place.
“Nothing is sure and we need immediate clarity,” said Khalid Hashim, managing director of Precious Shipping Pcl, a Thai firm that owns bulk carriers. “Lives are at risk, cargoes are at risk, ships are at risk. We need immediate cover that protects us from all this,” he said.
Today's show features:
- Bloomberg News National Security Team Leader Nick Wadhams on whether Iran is seeking an onramp to the ongoing war
- Steve Moore, Co-Founder of Unleash Prosperity and a former Trump Economic Advisor, on the US economic and monetary policy outlook
- Bloomberg News Consumer Tech Reporter Samantha Kelly on Apple’s latest product launch event and new low-priced laptop
- Bloomberg News Economic Editor Molly Smith with instant reaction to the latest Federal Reserve Beige Book release
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