US Treasury Secretary Bessent: An international coalition could protect ships in the Strait of Hormuz

U.S. Treasury Secretary Scott Bessent has indicated that an international coalition could play a role in safeguarding commercial shipping through the Strait of Hormuz, a critical global energy corridor. This comes amid heightened tensions following U.S. and Israeli military actions against Iran, which have disrupted maritime trade. To address risks, the U.S. International Development Finance Corporation (DFC) announced a $20 billion reinsurance facility to insure losses for eligible vessels transiting the region, with a focus on Hull & Machinery and Cargo coverage. The initiative, approved by President Trump, aims to restore confidence in maritime trade and stabilize energy markets by mitigating war-risk insurance gaps.

DFC CEO Ben Black emphasized that the reinsurance plan, developed in coordination with the U.S. military’s Central Command (CENTCOM), would provide a "level of security no other policy can provide". While details on eligibility criteria remain unclear, the DFC has partnered with "best-in-class, preferred American insurance partners" to implement the program. Meanwhile, London market insurers continue to offer coverage, albeit at significantly elevated rates, according to industry reports.

Bessent also hinted at potential policy adjustments to boost global oil supplies, including possible sanctions relief on Russian oil shipments to India, which could ease short-term market pressures. Brent crude prices recently surpassed $92 per barrel, reflecting ongoing volatility. The DFC's efforts underscore a broader U.S. strategy to secure energy flows while balancing geopolitical and economic priorities.

DFC Announces $20B Plan for Maritime Reinsurance in the Gulf.
U.S. Launches $20bn Reinsurance Facility for Gulf Shipping.