$20 Billion Reinsurance Program for Strait of Hormuz Announced

The Trump administration has announced a $20 billion reinsurance program for tankers crossing the Strait of Hormuz, aiming to restart shipping in the region.

The U.S. International Development Finance Corporation (DFC) will cover losses up to $20 billion, providing security to ship owners and shipping companies.

DFC CEO Ben Black stated that the plan will allow the passage of oil, gasoline, LNG, and fertilizers to international markets.

The decision comes at a time of intense turmoil in energy markets, with U.S. crude oil prices exceeding $90 a barrel.

Some Gulf countries have already begun to limit oil production due to the inability to export through the Strait of Hormuz.