US to reinsure maritime losses in Gulf up to about $20 billion, agency says

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.