The Trump administration announced a $20 billion reinsurance program through the U.S. International Development Finance Corporation (DFC) to cover maritime losses in the Persian Gulf, as U.S. crude oil prices surged more than 12% Friday to above $90 per barrel amid halted tanker traffic through the Strait of Hormuz.
- The DFC will insure losses up to $20 billion on a rolling basis for oil tankers and other maritime vessels operating in the region.
- The DFC and U.S. Treasury are coordinating with U.S. Central Command to implement the program.
- Tanker traffic in the Persian Gulf remains largely at a standstill due to the Iran conflict, with several vessels reportedly attacked in recent days.
- Some Gulf producers have begun cutting output as exports through the Strait are disrupted.
- The Strait of Hormuz handles roughly 20% of global crude oil consumption and about 20% of global liquefied natural gas exports.
- President Donald Trump previously said the U.S. would provide insurance support and Navy escorts to commercial vessels if needed.
Relevant Companies
- Exxon Mobil ($XOM) – Major global crude producer with exposure to international oil markets.
- Chevron ($CVX) – Integrated oil company impacted by global crude price movements and Middle East supply flows.
- Cheniere Energy ($LNG) – U.S. LNG exporter potentially affected by global LNG trade disruptions through the Strait.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
