President Donald Trump\u2019s pledge late on March 3 to insure and protect oil and LNG tankers in the effectively shuttered waterway helped stop the surge in oil and gas prices. Energy analysts have pointed to expensive or unavailable insurance coverage as a key reason for the lack of traffic, in addition to the threat of attacks. But the unprecedented explosion of a Russia-flagged LNG tanker in the Mediterranean added more unease to global energy markets. Reuters reported that Ukraine was suspected of a drone attack on the vessel.<\/p>\n
Oil, natural gas, and retail gasoline prices in the U.S. all continued to rise on March 3, but not nearly to the extent of natural gas prices in Asia and Europe, which rely much more on the oil and Qatari LNG volumes that make up nearly 20% of global supplies.<\/p>\n
\u201cThe European [gas] benchmark soared 90% in the past two days, and Asia\u2019s [benchmark] also jumped,\u201d said Pavel Molchanov, Raymond James investment strategy analyst. \u201cThese economies rely on imported LNG, so they are affected by the disruption in Qatar\u2019s LNG exports. As the world\u2019s largest LNG producer, the U.S. doesn\u2019t have the same worry as Europe or Asia\u2014in fact, it could benefit.\u201d<\/p>\n
The narrow, 104-mile Strait of Hormuz is the main choke point separating the Persian Gulf\u2014and the daily flow of nearly 20 million barrels of oil\u2014from global energy markets. Qatar took its LNG production offline March 2 as embattled Iran launched more strikes on its neighbors.<\/p>\n
Without providing details, Trump said on social media March 3 that the U.S. would begin offering \u201cpolitical risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf.\u201d<\/p>\n
\u201cIf necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible,\u201d Trump added. \u201cNo matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD.\u201d<\/p>\n
That announcement came soon after the Russian-flagged tanker Arctic Metagaz \u200bwas on fire off the coast of Malta. The \u200bvessel was under U.S. and \u2060U.K. sanctions.<\/p>\n
Mathieu Utting, global gas and LNG analyst for Rystad Energy, told Fortune <\/em>the massive Middle Eastern energy disruption would have been much worse at the beginning of winter when gas heating demand was rising.<\/p>\n Because China is the leading importer of both Middle Eastern oil and Qatari natural gas, it should only be a matter of time before China pressures Iran to let volumes flow through the strait, Utting said.<\/p>\n In the meantime, U.S. exporters will \u201cdefinitely profit more,\u201d Utting said. Nearly 15% of U.S. LNG volumes are uncontracted and can be sold on spot markets at higher prices. Also, many of the LNG buyers are Big Oil giants or global commodity trading houses that can redirect the volumes as needed. They just can\u2019t increase the volumes much at all.<\/p>\n Mike Sabel, CEO of Venture Global, a leading U.S. LNG exporter, said on a March 2 earnings call that his company has the \u201cmost available cargoes\u201d to sell on the spot market. And because Venture Global owns a lot of its tanker fleet, it doesn\u2019t need to cover higher tanker costs.<\/p>\n \u201cThere are markets in Asia that are also heavily reliant on Qatar supply. Every day that ships can\u2019t flow through, that creates a lot of backup and incremental demand,\u201d Sabel said. \u201cWe\u2019re uniquely able to move cargoes with our own vessels in this market.\u201d<\/p>\n Any day now, the new Golden Pass LNG facility\u2014owned by Qatar and Exxon Mobil\u2014could come online along the Texas Gulf Coast to export more volumes. Exxon chairman and CEO Darren Woods recently said the first LNG production should begin \u201cin very early March.\u201d<\/p>\n
![\"\"](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/03\/GettyImages-2263666258_908eff.jpg?format=webp&w=1440&q=100\"\/)
<\/div>\n