According to a notice from the US International Development Finance Corporation (DFC), this agency will coordinate with the US Treasury Department to implement an insurance package with a limit of up to 20 billion USD.
The program is designed in the form of continuous review and capital rotation, allowing timely payment of maritime losses arising during transportation. This is considered Washington's strongest financial intervention effort to stabilize the international maritime transport market in the face of complex developments in the Middle East.
The key objective of the support package is to normalize trade in essential commodities such as oil, liquefied natural gas (LNG) and fertilizers passing through the Strait of Hormuz.
In the context of escalating tensions, commercial insurance premiums in this region have skyrocketed, causing many shipping lines to hesitate or refuse routes through the Gulf region. Mr. Ben Black, CEO of DFC, emphasized that the implementation of this program will bring a safety network that no current private insurance policy can provide.
The biggest difference of this insurance package is the close coordination with the US Central Command (CENTCOM). The combination of financial guarantee and military sponsorship is expected to help petroleum, jet fuel and fertilizer tankers return to safe circulation.
The US believes that clearing the "bottleneck" of Hormuz is an urgent task to prevent a global energy crisis, as this strait is the only gateway for most of the crude oil from the Gulf powers to export to Asia and Europe.
This move takes place in the context of geopolitical risks in the Middle East causing serious disruptions to the commodity supply chain. The US direct sponsorship of finance not only helps reduce the cost burden for transportation businesses but also affirms Washington's commitment to maintaining freedom of navigation on strategic waterways. If successful, this program will help cool down world energy prices, which are under heavy pressure from armed conflicts in the region.
