US offers 20 billion dollars in Gulf maritime insurance
The US will provide up to 20 billion dollars in maritime reinsurance for the Gulf region. The program aims to restore confidence for oil and gas shippers.
The United States government has announced it will provide up to $20 billion in reinsurance for maritime losses in the Gulf region. This initiative, managed by the U.S. International Development Finance Corporation (DFC), is designed to bolster confidence for oil and gas shippers amid the ongoing conflict with Iran.
The move comes after President Donald Trump directed the DFC to provide political risk insurance and financial guarantees for maritime trade. The intervention was necessitated by a halt in tanker traffic through the Strait of Hormuz, a vital waterway situated between Iran and Oman. This channel is a critical artery for global energy, with approximately 20% of the world's daily oil supply, including Brent Crude Oil, passing through its waters.
The DFC stated that the insurance program will be implemented on a rolling basis, focusing on immediate needs for the shipping industry.
The insurance will occur on a rolling basis and will initially focus on hull and machinery and cargo insurance.
