Shippingtelegraph: US DFC $20b plan for maritime reinsurance in Gulf
The U.S. will provide reinsurance for losses up to $20bln in the Gulf region, to help restore confidence for oil, gasoline, LNG, jet fuel, and fertilizer shippers during the war on Iran, the U.S. International Development Finance Corporation (DFC) said on Friday.
The DFC chief executive Ben Black and U.S. Treasury secretary Scott Bessent announced Friday an agreement on a detailed implementation plan approved by US president Donald Trump to deploy maritime reinsurance, including war risk, in the Gulf region.
The DFC reinsurance facility will insure losses up to approximately $20bln on a rolling basis. This revolving insurance offering will apply only to vessels that meet the criteria. The insurance will focus on hull & machinery and cargo to start.
The DFC and Treasury Department said they are closely cooperating with U.S. Central Command to implement the plan.
DFC has identified the preferred American insurance partners.
Last week, Trump offered political risk insurance and a US Navy escort of tankers through the Strait of Hormuz.
The White House will offer naval escorts, political risk insurance and guarantees for the financial security of all maritime trade, especially energy, traveling through the Gulf, Trump said, in a bid to cool energy prices that have surged and give maritime shipping companies financial protection amid the war in Iran.
“I am grateful to President Trump and Secretary Bessent for their support and approval of DFC’s plan to restore confidence in maritime trade and stabilize international markets. Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide. We are confident that our reinsurance plan will get oil, gasoline, LNG, jet fuel, and fertilizer through the Strait of Hormuz and flowing again to the world,” said DFC CEO Ben Black.”
In close coordination with CENTCOM, this plan aims to restore confidence in maritime trade, help stabilize international commerce, and support American and allied businesses operating in the Middle East during the conflict with Iran.
“Under the leadership of President Donald J. Trump, DFC gov will work with US Treasury to provide up to $20 billion of maritime reinsurance in the Gulf region. This DFC program will – working alongside CENTCOM – provide shippers hauling oil, gasoline, LNG, jet fuel, and fertilizer with a level of security no other policy can provide,” noted Treasury secretary Scott Bessent.
Related Posts
