Most people completely missed the most important part of Trump’s latest announcement about the Strait of Hormuz.
It wasn’t the naval escorts, it was the insurance.
For more than two centuries, the real gatekeeper of global shipping has not been navies, it has been insurance.
Ships cannot sail without it. Ports will not accept them. Banks will not finance their cargo. If insurers refuse coverage, trade stops overnight.
And historically, that insurance power has sat in London, centered around the maritime insurance market of Lloyd’s.
During the height of the British Empire, control over maritime insurance effectively meant control over global trade routes , including the movement of oil.
If London insurers declared a route too dangerous or politically unacceptable, tankers simply stopped moving.
The Strait of Hormuz is the single most critical energy artery on the planet. Roughly a quarter of the world’s oil flows through that narrow passage.
If insurers withdraw coverage because of war risk, the global energy system can seize up almost instantly.
By offering U.S. government-backed insurance and guarantees, Trump is effectively saying that the flow of oil through Hormuz will not depend on private insurance markets in London.
In other words, the world’s most important energy corridor is now being placed under direct American financial and military protection.
For centuries the British financial system sat at the center of global maritime insurance, holding enormous leverage over trade and energy flows, Trump has just bypassed that system.
https://t.me/LauraAbolichannel
The British elites ain't going to be too pleased losing that financial chunk of income and we are talking billions if not trillions of dollars.
Nail on the head buddy. But with the woke policies of curren state of Britain, the oil should be the least of their worry’s
