US increases insurance guarantees for ships in the Strait of Hormuz to $40 billion
Kyiv • UNN
DFC has increased the volume of reinsurance for maritime oil and gas transportation due to the threat of attacks. New major insurance partners have been brought into the program.
The United States has doubled the volume of reinsurance guarantees for ships passing through the Strait of Hormuz, from $20 billion to $40 billion. This was announced by the U.S. International Development Finance Corporation (DFC), which is trying to restore confidence in one of the key routes for global oil and gas trade, Bloomberg reports, writes UNN.
Details
New insurance partners have joined the program, including AIG, Berkshire Hathaway, Travelers, Liberty Mutual, Starr, and CNA. They will complement the already involved Chubb and provide additional coverage for maritime transport amid the threat of attacks in the region.
The Strait of Hormuz remains one of the main points of tension in the Middle East. About a fifth of the world's oil and liquefied natural gas flows typically pass through it, so disruptions to traffic immediately affect energy markets.
What the US said
DFC head Ben Black said that the new insurance partners have significant experience in marine insurance and war risk insurance.
Together with Chubb, these leading American insurers have deep underwriting experience in marine and marine war insurance, strengthening our efforts to restore confidence in maritime trade.
U.S. President Donald Trump also again expressed dissatisfaction with the situation around the strait.
In a little more time, we can easily OPEN THE STRAIT OF HORMUZ, TAKE THE OIL, AND MAKE MONEY.
Despite this, shipping companies are not yet rushing to return to normal operations. The main reason is the threat of drone, missile, and naval mine attacks, which are linked to Iran.