Trump vows to secure Middle East oil flows amid escalating Iran war, as the United States moves to calm fears of a global energy shock triggered by a rapidly expanding conflict that has engulfed much of the region and sent financial markets on a roller-coaster.
Speaking as fighting entered its fifth day, Donald Trump said Washington would take direct steps to ensure that oil and other energy supplies continue moving out of the Middle East, even as Iran and Israel exchange increasingly intense attacks and regional tensions deepen.
“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” Trump said in a social media post on Tuesday, underscoring his administration’s willingness to intervene to prevent disruptions from spiraling into a full-blown energy crisis.
The conflict shows little sign of slowing. Israel and Iran continued trading airstrikes and missile barrages overnight, with hundreds reported dead in Iran and dozens killed elsewhere across the region. The US has confirmed that six American service members have been killed since hostilities began, highlighting how quickly the confrontation has drawn in outside powers.
Iran’s leadership has publicly rejected the idea of talks with Washington. Mohammad Mokhber, an adviser to the late Ayatollah Ali Khamenei, who was killed in the opening wave of strikes, said Iran has no intention of negotiating with the United States.
“We have no trust in the Americans and no intention of negotiating with the US,” Mokhber told state television.
The war has already spread beyond the two main adversaries. About a dozen countries are now directly or indirectly involved, with Iran launching strikes on US bases and diplomatic facilities across the Middle East, and Israel expanding military operations against Hezbollah in Lebanon after attacks by the Iran-aligned group.
Major global powers, including China, India, Japan and South Africa, have voiced alarm about the growing humanitarian toll and the mounting economic consequences of the conflict.
Against this backdrop, Trump outlined a two-pronged plan aimed at stabilizing energy markets. He said the US International Development Finance Corporation would provide insurance at what he described as “a very reasonable price” to support oil shipments and commercial trade through the Persian Gulf. In addition, the US Navy would be prepared to escort tankers through the strategically vital Strait of Hormuz if necessary.
The strait is one of the world’s most important energy corridors, carrying roughly a fifth of global oil consumption. Since the fighting erupted, shipping through the waterway has slowed dramatically as vessel owners weigh the risks of attack and insurers pull war-risk coverage.
Trump’s comments initially helped soothe market nerves. A report by the New York Times that Iran had made indirect contact with US officials about ending the war added to the sense that the conflict might yet be contained.
US equity futures rebounded, with S&P 500 contracts rising 0.3% after a sharp drop in the previous session. Brent crude pared earlier gains, trading about 1.8% higher in Dubai, while gold extended its rally above $5,100 an ounce. A selloff in global bonds also showed signs of easing.
In the Gulf, however, the mood was more somber. Stock markets in Dubai and Abu Dhabi opened sharply lower when trading resumed for the first time since the war began, reflecting regional exposure to both energy markets and security risks.
Despite Trump’s assurances, traders and shipping executives remain deeply skeptical that oil flows can return to normal quickly. Crude prices have jumped roughly 13% since US and Israeli strikes on Iran began, as attacks and counterattacks effectively halted traffic through the Strait of Hormuz.
Trump offered few details on how the DFC insurance mechanism would work in practice. The agency typically focuses on mobilizing private capital for projects in developing countries and reducing political risk for investors. Applying that model to insure oil tankers operating in an active war zone would be unprecedented in scale.
Political risk insurance can cover losses from war, civil unrest and other forms of instability, but industry specialists say pricing such coverage amid an open conflict would be extraordinarily difficult.
It also remains unclear how long the fighting will last. Trump has said the war could stretch on for weeks. Iran has shown no willingness to abandon its nuclear enrichment program, halt its ballistic missile development or end support for regional militias — the core demands of the US and Israel.
Israeli officials have cautioned against assuming Iran’s military capabilities are close to exhaustion. “Iran still has significant capabilities,” said Danny Danon in a radio interview. “There’s still a long way to go in this war.”
Behind the scenes, however, there are signs of quiet maneuvering. According to the New York Times, operatives linked to Iran’s intelligence services made indirect contact with the Central Intelligence Agency a day after the fighting began, signaling a willingness to discuss terms for ending the conflict.
Israeli officials urged Washington to dismiss the outreach, and US officials reportedly view the approach as tentative and not yet serious.
Public opinion highlights a stark divide between the two countries. A survey by the Institute for National Security Studies in Israel found that 81% of respondents supported the strike on Iran, and nearly two-thirds favored continuing the war until Iran’s government is overthrown. In contrast, polls in the US show strong opposition to deeper American involvement in the conflict.
Meanwhile, Iranian attacks on US and allied facilities continued overnight. A drone strike targeted the US consulate in Dubai, sparking a limited fire that was quickly extinguished, according to the Dubai Media Office.
Saudi Arabia said its air defenses intercepted two cruise missiles near Prince Sultan Air Base, a key US facility outside Riyadh, and destroyed nine drones that entered Saudi airspace. Another drone was intercepted over the kingdom’s eastern province, home to some of the world’s largest oil facilities.
Supplies from Saudi Aramco’s Ras Tanura refinery were reported unaffected following attempted attacks, though the facility has been shut since Monday after being struck by Iranian drones. Ras Tanura is the world’s largest offshore oil loading terminal, making it a critical node in global energy supply chains.
Earlier in the week, drones struck the US Embassy in Saudi Arabia, hitting a CIA station, according to multiple media reports.
Crown Prince Mohammed bin Salman reiterated that the kingdom would take all necessary measures to protect itself. Pakistan, which signed a defense pact with Riyadh last year, reportedly warned Iran against further attacks on Saudi territory.
Elsewhere in the region, sirens sounded in Bahrain, home to a major US naval base. In Qatar, Iran fired a missile at Al Udeid Air Base, with another intercepted. Qatari authorities said they arrested 10 suspects linked to the Islamic Revolutionary Guard Corps, accusing them of spying on military facilities and planning sabotage.
The conflict has even reached Europe. A British air base on the Mediterranean island of Cyprus was hit by a drone strike over the weekend — the first confirmed attack on European territory since the war began.
Israel has expanded its operations beyond Iran. The military said it struck 60 Hezbollah targets in Lebanon after the group launched attacks on Israel. Israeli officials say they have destroyed around 300 Iranian missile launchers and hit dozens of command centers in Tehran.
Iran fired multiple missile barrages at Israel overnight, while Israeli forces confirmed striking the Assembly of Experts building in the city of Qom. The military later acknowledged the site was empty at the time, meaning senior clerics survived.
Iranian media reported that preparations to select a successor to Khamenei are nearing completion. His funeral, initially expected this week, has been postponed, according to state-linked outlets. The Iranian Red Crescent says at least 787 people have been killed in the country since the war began.
As the conflict grinds on, Trump’s vow to secure Middle East oil flows may help stabilize markets in the short term. But with fighting intensifying and diplomatic off-ramps uncertain, the risk of prolonged disruption to global energy supplies remains high — and markets know it.
