Washington: The United States unveiled a $20 billion maritime reinsurance plan aimed at protecting shipping and stabilising trade through the Gulf region amid tensions linked to the conflict with Iran.
The initiative was announced by the US International Development Finance Corporation (DFC) and the US Department of the Treasury following President Donald Trump’s approval of a detailed implementation strategy.
DFC Chief Executive Officer Ben Black and Treasury Secretary Scott Bessent said the programme will deploy maritime reinsurance coverage, including war risk insurance, for vessels operating in the Gulf.
Officials said the plan is designed to restore confidence in shipping lanes and support global commerce during the ongoing crisis. “Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide,” Black said in a statement.
The programme is intended to ensure that critical commodities continue to move through the region.
“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,” Black added.
The new facility will insure maritime losses of up to about $20 billion on a rolling basis. Officials said the insurance will apply only to vessels that meet specific criteria under the programme.
Initially, the coverage will focus on Hull & Machinery as well as Cargo insurance for eligible ships.
The US government said the programme will rely on selected American insurance companies identified as preferred partners. Officials said coordination is underway with the United States Central Command (CENTCOM) on the operational rollout.
The initiative marks what officials described as a key milestone in implementing the president’s directive to use the DFC’s financial tools to protect maritime trade during the regional crisis.
Authorities said the insurance structure is designed as a revolving facility, allowing coverage to continue as ships enter and exit the region.
Businesses and financial institutions seeking access to the maritime reinsurance programme have been asked to contact the DFC directly for further details.
The Gulf shipping corridor, particularly the Strait of Hormuz, is one of the world’s most critical energy transit routes. A large share of global oil and liquefied natural gas shipments passes through the narrow waterway connecting Gulf producers to international markets.
–IANS
India, New Zealand sign historic Free Trade Agreement
New Delhi: India and New Zealand signed a historic Free Trade Agreement (FTA) here on Monday that removes tariffs on 100 per cent of India’s exports to New Zealand, and...
India, New Zealand set to sign FTA for improved market access on April 27
New Delhi: As India and New Zealand prepare to sign a Free Trade Agreement (FTA) on Monday, both sides are expected to benefit from expanded trade ties and improved market...
4 carmakers to recall over 530,000 vehicles due to faulty parts
Seoul: Hyundai Motor, Kia and two other carmakers will voluntarily recall over half a million vehicles in South Korea to address defective components, the transport ministry here said on Wednesday....
India-linked tariff refunds in US may touch $12 billion
New Delhi: India-linked tariff refunds on exports to the United States are expected to be in the region of $10 to $12 billion after the US authorities opened a $166...
Oil prices surge after US seizes Iran ship
Washington: Global oil prices surged sharply on Monday after the United States seized an Iranian cargo ship, raising fears of escalation and clouding prospects of a peace deal between Washington...
India resilient despite global shocks, says IMF chief
Washington: India’s economy is expected to remain resilient even as global growth slows amid war-driven disruptions, with strong fundamentals helping it outperform most economies, the International Monetary Fund’s Managing Director...
Middle East tensions cut global growth outlook: IMF
Washington: The global economy has taken a hit from the ongoing conflict in the Middle East, with growth projections lowered despite strong underlying momentum driven by technology investment and private...
Conflicts in Middle East could reshape global economy, says World Bank chief Ajay Banga
Washington: Rising geopolitical tensions are beginning to reshape economic expectations, with the World Bank’s president Ajay Banga warning that prolonged conflict could dampen growth, fuel inflation and strain vulnerable economies....
Oil shock to drag growth, raise inflation: IMF
Washington: A global oil shock linked to the Middle East conflict is set to hit growth and stoke inflation across energy-importing economies, the International Monetary Fund (IMF) Managing Director Kristalina...
RBI holds repo rate at 5.25 pc, maintains neutral instance amid global uncertainty
New Delhi: The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25 per cent, and maintaining the status quo in its latest Monetary Policy Committee...
Oil falls after Trump signals Iran pause
Washington: Oil prices dropped sharply after US President Donald Trump said he would pause planned military strikes on Iran for two weeks, easing fears of a wider conflict in the...
Trump imposes 50 per cent tariffs on steel, aluminum, and copper
Washington: US President Donald Trump signed a sweeping proclamation imposing steep tariffs on imports of steel, aluminium and copper, tightening trade controls in the name of national security. The order...
