{"id":397094,"date":"2026-03-31T16:29:49","date_gmt":"2026-03-31T06:29:49","guid":{"rendered":"https:\/\/www.worldcargonews.com\/?p=99570"},"modified":"2026-03-31T16:29:49","modified_gmt":"2026-03-31T06:29:49","slug":"us-may-launch-gulf-shipping-reinsurance-scheme","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=397094","title":{"rendered":"US may launch Gulf shipping reinsurance scheme"},"content":{"rendered":"

The United States is understood to be moving to underwrite maritime risk in the Strait of Hormuz. The US government is set to provide a US$20 billion insurance facility. The move is aimed at restoring confidence in Gulf energy trades amid the Iran conflict.<\/strong>
\n<\/span><\/p>\n

The maritime insurance backstop is intended to support shipping transiting the Strait of Hormuz, as officials seek to stabilise energy flows and calm volatile markets. Speaking during a cabinet meeting at the White House, Treasury Secretary Scott Bessent said the programme would begin \u201csoon\u201d, offering up to US$20 billion in reinsurance cover for vessels operating in the Gulf region. However, the situation in the Middle East<\/a> remains volatile and dynamic – neither of which is conducive to safe shipping.<\/p>\n

Confidence measure for energy trades<\/h2>\n

The initiative, led by the US International Development Finance Corporation<\/a> (DFC) in coordination with the US Treasury, is designed to support shipments of oil, LNG, refined products and fertilisers moving through the Gulf during the ongoing conflict involving Iran. Under the plan, Washington will provide a combination of reinsurance, political risk cover and naval support to safeguard maritime trade.<\/p>\n

President Donald Trump has framed the measures as part of a broader effort to ease upward pressure on global energy prices while ensuring continuity of supply. The DFC facility will operate on a rolling basis, insuring losses of up to US$20bn and initially focusing on hull and machinery, as well as cargo coverage. Eligibility criteria will apply to participating vessels.<\/p>\n

Industry capacity backed by Chubb<\/h2>\n

Implementation of the scheme is being coordinated with the United States Central Command, a military department, reflecting the security dimension of the initiative. New York-listed insurer Chubb<\/a> has been appointed lead underwriter, issuing policies for qualifying vessels. Additional US insurers are expected to participate, providing reinsurance capacity alongside the DFC to scale up market coverage.<\/p>\n

Bessent indicated that tanker and cargo movements in the Gulf are already beginning to recover, suggesting the programme could accelerate a return to more normal trading patterns. He added that increased traffic was visible \u201cday by day\u201d, even before full security of the strait is restored. The move comes against a backdrop of heightened concern over energy market stability, with US officials arguing that short-term disruption is a necessary trade-off for longer-term security of supply.<\/p>\n","protected":false},"excerpt":{"rendered":"

The United States is understood to be moving to underwrite maritime risk in the Strait of Hormuz. The move is aimed at restoring confidence in Gulf energy trades amid the Iran conflict.<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[72,12152,19979,19980,12817,471,1503,19981],"tags":[12159],"class_list":["post-397094","post","type-post","status-publish","format-standard","hentry","category-business","category-business-commerce-miscellaneous","category-chubb","category-hormuz","category-insurance","category-news","category-us","category-us-international-development-finance-corporation","tag-world-cargo-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t