Ship operators and brokers questioned President Trump’s plan to provide insurance and naval escorts for tankers passing through the Strait of Hormuz, which he proposed to keep energy supplies flowing as the conflict with Iran continues.

• After several maritime insurers cancelled coverage for ships sailing in the Persian Gulf, Trump said in a Truth Social post that he ordered the U.S. International Development Finance Corp. to provide, “at a very reasonable price,” political risk insurance for all maritime trade in the Gulf. He said the Navy escorts, if necessary, could begin as soon as possible. 
• The IDFC is a federal institution tasked with attracting private capital to developing countries and mitigating investment risks. It doesn’t have the authority or financial resources to cover ships crossing the Strait, said William Henagan, a research fellow at the Council of Foreign Relations.

The president’s pledge came as more than 3,000 vessels were stuck in Persian Gulf ports waiting to cross the Strait, according to Clarksons Research. Among the idled vessels were 112 crude tankers, 195 product tankers and 114 containerships. The lack of tanker supply has sent daily spot rates for VLCCs soaring to double or more than the $200,000 reported at the end of last week.

Crude futures rose again Tuesday, but eased after Trump’s offer of insurance and naval protection. While diesel futures prices, too, receded a bit from the day’s surge higher, the runup still dings truckers transporting goods and produce. 

Aside from a surge in the cost of fuel, airlines are weighing the viability of routes that have relied on the Middle East corridor. Rerouting around the region can add hours of flight time, which not only uses more fuel, but also upends tightly managed schedules.

• The U.A.E.’s two biggest long-haul air carriers, Emirates and Etihad, extended a pause on all scheduled flights at their Dubai and Abu Dhabi hubs, but said they would fly a limited number of repatriation and cargo flights in and out of the country.
• Oman Air Cargo said it would add extra belly-hold capacity in the coming days through new flights on some routes.

• Norwegian aluminum producer Norsk Hydro said its Qatari smelter is shutting down after its joint-venture partner stopped supplying gas amid attacks from Iran. (WSJ)

Kuehne + Nagel said it was cutting over 2,000 jobs as part of a cost-savings program as the Swiss transport and logistics company posted a drop in 2025 earnings. Before last weekend’s strikes on Iran, the freight industry had been contending with overcapacity and earnings pressure.

It launched the company-wide program to cut about $255.8 million in costs toward the end of last year, initially targeting between 1,000 and 1,500 job reductions. Kuehne + Nagel said it has made significant efficiency gains by applying AI in a range of operations and back-office processes, with high potential for further improvements.

Fourth-quarter sea-logistics freight volumes fell 2% from a year earlier, though the company said profitability per container increased materially. Freight volumes in air logistics rose 7%, driven by demand for semiconductors and cloud infrastructure.

Target said it would spend about $6 billion this year on a turnaround plan, investing in stores, workers and technology, as it posted its 13th consecutive quarter of weak or falling sales. The company is revamping categories where it has lost market share, including home goods and apparel, and investing further in others such as grocery, The Wall Street Journal’s Sarah Nassauer writes.

To pay for some of those investments, Target will cut costs elsewhere. It has already laid off corporate workers and regional staffers, in part to shift spending to improve staffing at stores. New CEO Michael Fiddelke, who took over the top job on Feb. 1, is predicting he can get Target growing again quickly. 

The company said it would allocate more space for its grocery offerings, and new, trendy clothing will hit shelves faster. In home goods, it means a significant remodeling of that area in stores and redesigning nearly all of the products it sells, executives said.

• Best Buy projected weak growth for the year ahead as it expects consumers to continue hunting for value, hurting demand for its consumer electronics. (WSJ)
• AutoZone said winter storms stalled momentum during the recent quarter, resulting in lower-than-expected sales. (WSJ)

CORRECTION: Nymex April diesel futures on Monday made their biggest daily gain since early 2022, when Russia invaded Ukraine. The Number of the Day in Tuesday's newsletter incorrectly transposed Russia and Ukraine.

• Eurozone inflation unexpectedly rose to 1.9% in February from 1.7% in January, and could accelerate further if the rise in energy prices following U.S. and Israeli attacks on Iran is sustained. (WSJ)
• A federal judge has rejected the Trump administration’s efforts to terminate New York City’s congestion-pricing program. (WSJ)
• Democratic lawmakers are preparing legislation aiming to break up U.S. meatpackers and review foreign-owned meat companies, as part of an effort to curb record-high beef prices. (WSJ)
• RV maker Thor Industries warned that a cloudy consumer outlook driven by geopolitical and economic uncertainty could hit its results. (WSJ)
• Ayar Labs, a startup backed by Nvidia and AMD working to improve the way semiconductors are connected in server racks, raised $500 million in a funding round that values it at $3.8 billion. (WSJ)
• Thales expects increased European defense budgets to boost sales, driven by geopolitical turmoil and renewed Middle East conflict. (WSJ)
• Nidec flagged a nearly $890 million expected hit following a monthslong investigation into accounting irregularities at the Japanese maker of electric motors and other equipment. (WSJ)
• U.S. Trade Representative Jamieson Greer said the Trump administration aimed to finish several trade investigations that would allow new tariffs within five months. (Bloomberg)
• NAPA plans to use more Brightpick AI-powered robots to help humans fetch and cart inventory more quickly in the auto-parts retailer’s warehouses. (SupplyChainDive)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.