Singapore official suggests Trump has a point on Hormuz security costs

A formal agreement among Asian nations to co-fund Hormuz security infrastructure or establish a regional maritime coalition could reduce perceived geopolitical risk in the strait, potentially easing energy price volatility and shipping insurance premiums in the medium term.

If Asian nations continue to acknowledge the burden without coordinating a unified response, markets would likely treat Hormuz risk as persistently elevated but priced in, keeping energy hedging costs elevated while shipping routes remain operationally stable absent new disruption events.

Should US policy shift toward reduced naval presence in the Gulf while regional tensions with Iran intensify, the fragmentation of security responsibility could trigger sharp spikes in crude oil volatility and shipping insurance costs as Asian nations scramble to secure alternative supply routes or negotiate independently with Iran.