Trump Orders Insurance Backstop for Ships in Gulf Amid Rising Tensions
In response to escalating tensions in the Persian Gulf, President Donald Trump has ordered the U.S. Development Finance Corporation (DFC) to provide political risk insurance and financial guarantees for maritime commerce. This initiative, announced on Tuesday, is designed to ensure the security of shipping lanes through the Strait of Hormuz, a critical chokepoint for global oil shipments. The DFC will work with commercial insurers, shipowners, and maritime insurance companies to minimize market disruptions and maintain the flow of energy resources. The insurance backstop comes amid increased Iranian threats to maritime traffic, which have already caused spikes in oil prices. The U.S. military has been authorized to accompany ships through the Strait if necessary, providing an additional layer of security. This federal intervention aims to prevent a collapse in maritime insurance coverage, which could lead to skyrocketing energy costs and severe disruptions to global trade. Lloyd's of London, traditionally the dominant provider of war risk insurance in the region, is reportedly in talks with the U.S. government regarding this new plan. The collaboration between the DFC and private insurers like Lloyd's seeks to create a sustainable framework for covering high-risk maritime routes. This move represents a significant shift in how political risk is managed in one of the world's most volatile shipping corridors, potentially altering the global insurance landscape for years to come.
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Sources
What to know about the agency Trump says will insure ships in the Persian Gulf - CBS News
The DFC, which will underwrite policies for ships traveling through the Gulf, said in a Tuesday statement that it will provide support to commercial shipping charterers, shipowners and maritime insurance companies to minimize market disruptions.
The US will offer political risk ... Mideast Gulf, President Donald Trump said on Tuesday. Trump said he ordered the US government finance provider Development Finance Corporation "to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially ...
Brokers consult with US officials on restoring Gulf maritime trade - Business Insurance
Marsh, which helped establish an ... and financial guarantees for maritime commerce in the Gulf. Insurance broker Aon is also in talks with the U.S. government on a plan to help insure tankers navigating the Strait, Bloomberg News reported on Wednesday....
Lloyd's of London market is working with the U.S. Development Finance Corporation on a plan to provide political risk insurance and guarantees for maritime trade in the Gulf. This collaboration aims to ensure secure maritime operations in a geopolitically sensitive area.
Navigating Risk: Lloyd's Engages U.S. for Gulf Maritime Insurance | Headlines
Lloyd's of London is collaborating with the U.S. International Development Finance Corporation to provide political risk insurance for maritime trade in the Gulf. This move aims to maintain Lloyd's leadership in war risk insurance as tensions rise in the Middle East and maritime activities ...
Maritime insurers cancel war risk cover in Gulf: Will it hike energy costs? | Energy News | Al Jazeera
On Tuesday, US President Donald ... in the Gulf, adding that the US military will accompany ships through Hormuz if necessary. “Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially ...
US will provide insurance for ships in Gulf amid Iranian attacks: Trump | Energy News | Al Jazeera
President Donald Trump has announced ... in the Gulf after Iran largely succeeded in shutting down the Strait of Hormuz, sending oil prices soaring. The US president added that the US military will accompany ships through Hormuz if necessary. ... “Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially ...
In response, Trump on Tuesday vowed ... (DFC) to provide coverage. Trump has also promised gunboats for protection. Details are so far thin on the ground but Mohit Kumar, an economist at Jefferies, said US coverage “could be a game changer”. Trump’s insurance may be good news for shipping companies, and energy prices, but it is potentially bad news for Lloyd’...
Trump ordena asegurar los barcos quitándole el pan de la boca a Lloyd's de Londres, que siempre ha dominado los seguros marítimos - Pravda ES
Con efecto INMEDIATO, he ordenado ... (DFC) que proporcione, a un precio muy razonable, un seguro contra riesgos políticos y garantías para la seguridad financiera de TODO el comercio marítimo, en particular energético, que atraviesa el Golfo · De esta manera, los barcos continuarán transitando, asegurados y posiblemente escoltados y, al mismo tiempo, Lloyd's de Londres ...
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