The Texas Voyager oil tanker anchors off the coast of Chevron’s El Segundo Refinery on March 4, 2026 in El Segundo, California.
Patrick T. Fallon | AFP | Getty Images
The Trump administration on Friday announced a $20 billion reinsurance program for oil tankers and other maritime traffic to allow ships to transit the Strait of Hormuz.
U.S. oil prices rose 35% this week as tanker traffic in the Persian Gulf stalled due to the Iran war. Some Gulf states have begun cutting production because they can’t export oil through the strait.
The US International Development Finance Corporation regularly insures losses of up to $20 billion. DFC and the Treasury Department said they are working closely with U.S. Central Command to implement the plan.
“We are confident that our reinsurance plan will get oil, gasoline, LNG, jet fuel and fertilizer flowing back into the world through the Strait of Hormuz,” DFC CEO Ben Black said in a statement.
The strait is the world’s most important barrier for crude oil, with approximately 20% of the world’s consumption being exported through this narrow waterway. Approximately 20% of the world’s liquefied natural gas exports also pass through the strait.
President Donald Trump said Tuesday that the United States will provide insurance for merchant ships and U.S. Navy escorts in the Persian Gulf if necessary. Several oil tankers have been attacked since the United States and Israel launched major airstrikes against Iran last weekend.
Matt Wright, senior cargo analyst at consulting firm Kpler, says insurance is not the main issue for shipowners at the moment. Wright said tankers have not transited the strait due to physical safety concerns.
“We need confidence that Iran’s ability to continue the war has diminished,” Wright told CNBC.
