A report said the Donald Trump administration is reviewing a plan to offer a paid so-called "VIP pass" service that would attach U.S. Navy escorts to ships seeking to transit the Strait of Hormuz.
On the 16th, Politico, a U.S. politics-focused outlet, cited three anonymous sources as saying, "Trump administration officials are discussing ways to revive the operation of oil tankers transiting the Strait of Hormuz," adding, "This includes a plan to provide a paid 'VIP pass' form of naval escort service."
The United States and Iran on the 14th agreed to halt hostile acts, including by electronically signing a cease-fire memorandum of understanding (MOU) that covers opening the Strait of Hormuz. But traffic through the strait has not recovered quickly since. According to Kpler, a provider of raw material market information, about 500 ships are currently anchored in the Persian Gulf, of which 220 are oil tankers.
According to the report, President Trump and White House Chief of Staff Susie Wiles instructed officials to come up with ideas to persuade shipowners to accept the risks of transiting the strait while the United States and Iran continue peace talks.
The discussions underway are said to be focused on encouraging insurers to resume providing coverage for vessels seeking to pass through the Strait of Hormuz. One anonymous source said, "With some limited exceptions, most transits constitute a breach of insurance terms," adding, "We are reviewing ways to prod insurers to provide coverage again."
An energy industry executive said there was also a proposal to use the Defense Production Act (DPA) to require insurers headquartered in the United States to provide coverage to ships transiting the Strait of Hormuz.
In the process, the "VIP escort" idea is also being discussed. One official said, "There is talk of paying the United States an expense to receive expedited escorted transit services," explaining, "It's a concept similar to granting a VIP pass to a vessel."
A former U.S. government official said discussions about the United States imposing transit fees on oil tankers are largely part of a negotiating tactic tied to the Group of Seven (G7) meeting currently taking place in France. The idea is to pressure European countries to be more actively involved in the region.
However, officials interviewed by Politico said none of the ideas currently under discussion have been finalized.