WTI ends near 74.66 after DFC insurance plan outlined
Oil prices were little changed on Wednesday after Treasury Secretary Scott Bessent said the Trump administration will support tankers operating in the Persian Gulf and plans additional measures in the coming days. The comments helped stabilize sentiment after sharp gains earlier in the week tied to the expanding conflict involving Iran.
U.S. crude settled up 10 cents, or 0.13%, at $74.66 per barrel. Global benchmark Brent slipped 3 cents to $81.37.
Earlier this week, U.S. crude nearly touched $78 per barrel after the United States and Israel launched a large wave of airstrikes against OPEC member Iran. Iran responded with missile and drone attacks across the Middle East, including strikes affecting energy infrastructure. U.S. crude rose 6% on Monday and 5% on Tuesday.
White House signals more steps and possible naval escorts
The market tone improved after President Donald Trump said Tuesday that the United States would insure tankers through the International Development Finance Corporation and could provide naval escorts for oil traffic in the Persian Gulf if needed. Oil prices eased as traders assessed the likelihood that government support could reduce disruptions to shipping and insurance availability.
Bessent told CNBC on Wednesday that more announcements are coming. “We have a series of announcements that we’re going to be making,” he said on Squawk Box. He said the administration started with the move for DFC to provide insurance for crude carriers and cargo ships operating in and around the Gulf.
Strait of Hormuz traffic stalls as ship owners weigh threats
Tanker movement through the Strait of Hormuz has largely stalled as ship owners assess the risk of becoming targets of Iranian retaliation. The strait is considered the most important chokepoint for the global oil trade. About 20% of global oil consumption is exported through the passage, making any sustained disruption a major risk factor for crude prices, inflation expectations, and broader market stability.
For now, prices have steadied as traders weigh the impact of security measures and insurance support against the continuing risk of escalation and the possibility that shipping delays could tighten physical supply in global markets.
