US stocks bounce back after Trump promises insurance for ships
US stocks took a wild ride on March 3, 2026, as threats from Iran's Revolutionary Guard to block the Strait of Hormuz sent markets plunging.
But things steadied after President Trump stepped in with a promise of risk insurance for ships trading in the Gulf, and the Dow recovered most of its losses by closing time.
Strait of Hormuz blockade
The Strait of Hormuz is a tiny waterway with huge impact—about 20% of the world's oil moves through it.
After recent US-Israeli strikes on Iran, tanker traffic dropped sharply: only three ships passed through on March 1 (on 28 February there were about 50).
Hundreds of tankers are now stuck or rerouting, and companies like Maersk have paused operations.
Oil prices and inflation fears
Oil prices jumped—Brent crude topped $82 per barrel and shipping was disrupted.
With so much oil trade disrupted, there are real worries about higher prices at the pump and ripple effects for everything from travel costs to inflation worldwide.