The United States has offered $20 billion in ship reinsurance to help encourage oil tankers and cargo vessels to resume operations in the Gulf region as the war involving Iran continues to disrupt global energy shipping.
The support package is intended to reassure shipping companies that they will be protected against financial losses caused by war risks, political instability or attacks while operating near the Strait of Hormuz — one of the world’s most critical oil transit routes.
The U.S. International Development Finance Corporation said the reinsurance would be available on a rolling basis, allowing insurers to cover ships transporting supplies through the region despite heightened security risks.
The move comes as fears over attacks on commercial vessels have slowed shipping traffic through the Strait of Hormuz, which carries a significant share of the world’s oil and natural gas shipments.
Possible naval escorts
U.S. President Donald Trump has said the U.S. Navy could escort oil tankers through the strait if necessary to ensure safe passage. Military escorts could help reopen the route and ease the global supply shortage triggered by the conflict.
However, the White House said Tuesday that naval escorts have not yet begun.
Tankers waiting in the Gulf
Shipping activity in the region remains severely disrupted. According to data from MarineTraffic, which tracks vessels worldwide, around 400 oil and fuel tankers are currently idle in the Gulf, waiting for conditions to improve before resuming transit.
Despite the tensions, one oil tanker passed through the Strait of Hormuz without incident on Monday, offering a small sign that limited traffic may still be possible.
The U.S. insurance support is aimed at restoring confidence among shipping companies and preventing a prolonged disruption to global energy supplies.
Muhammad Luqman is Associate Editor at Views News Now. He writes on wide-ranging issues including economy, South Asia, the Middle East, agriculture, economy and innovation. Luqman has worked some of the leading news organizations and won acclaim for his original and research-based works.
