Trump admin announces $20 billion insurance program for oil tankers
The Texas Voyager oil tanker remains anchored off the coast of Chevron’s El Segundo Refinery in El Segundo, California, on March 4, 2026.
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 keep ships passing through the Strait of Hormuz.
U.S. crude oil prices rose more than 12 percent on Friday, topping $90 a barrel, as tanker traffic in the Persian Gulf was at a standstill due to the Iran war. Some Gulf countries began to cut production because they could not export their crude oil through the Bosphorus.
USA International Development Finance Corporation It will insure up to $20 billion in losses on an ongoing basis. DFC and the Treasury Department said they are coordinating closely with U.S. Central Command to implement the plan.
“We are confident that our reinsurance scheme will keep oil, gasoline, LNG, jet fuel and fertilizer flowing through the Strait of Hormuz and back into the world,” DFC CEO Ben Black said in a statement. he said.
The Bosphorus is the most important transit point for the world’s crude oil, with approximately 20% of global consumption exported through the narrow waterway. Approximately 20% of worldwide liquefied natural gas exports pass through the Bosphorus.
The United States will offer insurance to commercial ships in the Persian Gulf and U.S. Navy escorts if necessary, President Donald Trump said Tuesday. Several oil tankers have been attacked since the US and Israel launched a massive wave of air strikes against Iran last weekend.
Matt Wright, senior shipping analyst at consultancy Kpler, said insurance was not the main issue for shipowners at the moment. Wright said that the tankers did not pass through the Bosphorus because they were concerned about their physical safety.
“There needs to be some confidence that Iran’s ability to continue the war is diminishing,” Wright told CNBC.
