The U.S. will provide reinsurance for losses up to $20 billion in the Gulf region, to help provide confidence for oil and gas shippers during the war on Iran, the U.S. International Development Finance Corporation said on Friday.
President Donald Trump on Tuesday ordered the DFC to provide political risk insurance and financial guarantees for maritime trade in the Gulf after oil and liquefied natural gas tanker transit had ground to a halt in the Straight of Hormuz waterway between Iran and Oman, where ordinarily 20% of global oil moves daily.
The insurance will occur on a rolling basis and will initially focus on hull and machinery and cargo insurance, DFC said.