Post by : Bianca
Haleem
Washington:
The United States has announced a $20 billion maritime reinsurance programme aimed at protecting shipping operations and maintaining global trade through the Gulf region amid rising tensions linked to the conflict with Iran.
The initiative was introduced by the US International Development Finance Corporation (DFC) and the US Department of the Treasury after President Donald Trump approved a detailed strategy for its implementation.
According to officials, the programme will provide maritime reinsurance coverage for ships operating in the Gulf region. This includes war risk insurance, which will help shipping companies manage the risks caused by the ongoing regional crisis.
DFC Chief Executive Officer Ben Black and US Treasury Secretary Scott Bessent said the plan is designed to restore confidence in major shipping routes and support global trade.
Black said the programme will be implemented in coordination with the United States Central Command (CENTCOM) to ensure security for vessels traveling through the region.
“Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide,” Black said.
Officials stated that the insurance facility will cover maritime losses of up to $20 billion on a rolling basis. The coverage will apply only to vessels that meet specific eligibility requirements under the programme.
Initially, the plan will focus on providing insurance for Hull and Machinery as well as Cargo for qualified ships operating in the region.
The US government also confirmed that the programme will work with selected American insurance companies that will serve as preferred partners in delivering the coverage.
Authorities explained that the system will function as a revolving facility, allowing insurance coverage to continue as ships enter and exit the Gulf shipping routes.
Businesses and financial institutions interested in accessing the maritime reinsurance programme have been asked to contact the DFC for further information.
The move comes as the Strait of Hormuz, one of the world’s most important energy transit routes, faces increased uncertainty due to regional tensions. A significant portion of global oil, liquefied natural gas (LNG), gasoline, jet fuel and fertilizer shipments passes through this narrow waterway connecting Gulf producers with international markets.
US officials said the new insurance programme aims to ensure that critical energy supplies and other essential commodities continue to move safely through the region and reach global markets without disruption.
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