Treasury Secretary Scott Bessent discusses the United States’ new $20 billion maritime reinsurance plan, the Iran conflict and more on ‘Kudlow’.
Minister of Finance Scott Bessent said Iranians are fighting on two fronts and warned when the nation will face the next intense military operation by US forces on Friday.
Having failed militarily following what Bessent described as the United States’ “overwhelming” strike campaign, Iran has been forced to play another card: the economy.
The US asks China to curb Russian and Iranian oil purchases
Smoke rises over the city center after the Israeli army launched a second wave of airstrikes on Iran on February 28, 2026. (Fatemeh Bahrami/Anadolu via Getty Images/Getty Images)
‘I couldn’t succeed there [militarily]They are trying to create economic chaos, and I don’t think they will be able to do that,” he added.
This comes as the Trump administration is strengthening insurance for American ships traveling through the US Strait of Hormuza vital oil transit chokepoint controlled mainly by Iran.
About 20% of the world’s crude oil and natural gas flow through the critical waterway, and Bessent said its closure could roil energy markets.
‘When the conflict began, [insurers] has dropped all insurance for ships sailing in and out of the Strait of Hormuz or generally around the Gulf,” Bessent explains.
In an effort to restore confidence in maritime trade during the Iran conflict, the International Development Finance Company (DFC) announced Wednesday that it will provide up to $20 billion in insurance to ships traveling through the strait.
A Navy ship sails in the Strait of Hormuz, a crucial waterway through which much of the world’s oil and gas flows, March 1, 2026. (Sahar Al Attar/AFP via Getty Images/Getty Images)
KALSHI PREDICTION MARKET SUPPLYED FOR MORE THAN $54 MILLION IRAN LEADER BETTS AFTER ANNOUNCED ‘DEATH CARVEOUT’
“What this program will do is insure shippers, whether they are transporting oil, products or fertilizer,” Bessent said.
Iran claims the Strait of Hormuz is open, but says it will not allow ships connected to it to pass through Israeli or American interestsexplained the Minister of Finance.
Bessent further discussed whether U.S. ships will need protection when crossing the Iranian-controlled waterway as tensions between the nations rise.
Oil tanker in a port in the Strait of Hormuz (Giuseppe Cacace/AFP via Getty Images/Getty Images)
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Bessent noted that Iranian and Chinese ships have successfully transited during the conflict and vowed to resolve the issue.
“We will await word from CENTCOM as to when they believe safe passage is possible,” he said. “I don’t know if it’s a week or two weeks, but we’re on our way to getting this resolved.”
