US Talks About Paying for Safe Passage Through the Strait

The U. S. is considering new ways to get more oil ships through the Strait of Hormuz, a narrow waterway that carries about 20 % of the world’s oil. Right now, nearly 500 vessels are stuck outside the strait, most of them waiting to decide if they can safely cross. A deal was signed last year that says the two sides will negotiate more rules, but trust is low and many ship owners are still nervous. One suggestion from the administration is to let ships pay a fee for faster clearance, maybe with a U. S. naval escort. The idea is that the U. S. could charge for “VIP” passage, which would also give Europe a chance to join in keeping the waters safe.A former official said this could push France, Britain and others to take on more responsibility for maritime security. The U. S. has also talked about using the Defense Production Act to force insurance companies to cover ships traveling through Hormuz. This would make it easier for ship owners to get the protection they need and encourage them to sail. Oil prices have dropped from their peak during the conflict, but they are still higher than before the war began. The U. S. wants to restore normal trade levels, but the plan is still in early discussion and no final rules have been made. The outcome will affect both the global economy and U. S. politics as elections approach.