Treasury Secretary Scott Bessent discusses the United States’ new $20 billion maritime reinsurance plan, conflict in Iran and more on ‘Kudlow.’
Treasury Secretary Scott Bessent said Iranians are fighting on two fronts while warning when the nation will endure its next intense military operation from U.S. forces on “Kudlow” Friday.
“Tonight will be our biggest bombing campaign, and we’ll do the most damage to the Iranian missile launchers, the factories that build the missiles, and we are substantially degrading them,” Bessent told FOX Business host Larry Kudlow Friday.
After failing on the military front after what Bessent described as the United States’ “overwhelming” strike campaign, Iran has been forced to play another card, the economy.
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Smoke rises over the city center after the Israeli army launched a second wave of airstrikes on Iran Feb. 28, 2026. (Fatemeh Bahrami/Anadolu via Getty Images / Getty Images)
“Having not been able to succeed there [militarily], they’re trying to create economic chaos, and I don’t think they’re going to be able to do it,” he added.
This comes as the Trump administration bolsters insurance for U.S. vessels traveling through the Strait of Hormuz, a vital oil transit choke point primarily controlled by Iran.
About 20% of the world’s crude oil and natural gas passes through the critical waterway, and Bessent said its closure could roil energy markets.
“When the conflict began, [insurers] dropped all the insurance for any vessels going in and out of the Strait of Hormuz or generally around the Gulf,” Bessent explained.
In an effort to restore confidence in maritime trade during the conflict in Iran, the International Development Finance Corporation (DFC) announced Wednesday it will provide up to $20 billion in insurance to vessels traveling through the strait.
A navy vessel sails in the Strait of Hormuz, a vital waterway through which much of the world’s oil and gas passes, March 1, 2026. (Sahar Al Attar/AFP via Getty Images / Getty Images)
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“What this program will do is give shippers insurance, whether they are hauling oil, products, fertilizer,” Bessent shared.
Iran asserts that the Strait of Hormuz is open but says it will not allow ships through that are linked to Israeli or U.S. interests, the Treasury secretary explained.
Bessent went on to discuss whether U.S. vessels will need protection when crossing through the Iranian-controlled waterway as tensions intensify between the nations.
Oil tanker at a port in the Strait of Hormuz (Giuseppe Cacace/AFP via Getty Images / Getty Images)
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“There is the willingness to go through the strait if we also provide a naval escort if needed,” he told FOX Business.
Bessent noted that Iranian and Chinese vessels have been seen successfully passing through during the conflict and vowed to solve the issue.
“We will await to hear from CENTCOM in terms of when they think safe passage is possible,” he said. “I don’t know whether it’s a week or two weeks, but we are on track to get this solved.”