U.S. President Donald Trump has announced that the U.S. Navy will begin escorting commercial ships through the Strait of Hormuz starting Monday.
The decision follows reports that Iran has offered to reopen the strategic waterway, which has been a focal point of recent tensions.
Two U.S. merchant ships have already crossed the strait under the new operation, signaling a shift in the U.S. approach to securing commercial traffic in the region.
The move comes amid about the safety of shipping in the Hormuz Strait, a critical global energy chokepoint.
The U.S. military has denied claims from Iranian state media that a U.S. warship was struck in the area, but the deployment of naval escorts underscores the heightened risk environment.
Market participants are watching closely for any escalation or de-escalation in the region, as well as how this new U.S. policy might affect insurance costs, routing decisions, and energy flows.