U. S. Steps In to Cover Gulf Shipping Losses

The United States has announced a plan to insure maritime losses in the Gulf region, offering up to $20 billion in coverage. This move aims to give oil and gas shippers more confidence amid tensions with Iran. The initiative follows a halt in tanker traffic through the Strait of Hormuz, where normally about 20 percent of global oil passes daily. Shipping disruptions have caused serious financial worries for companies that rely on this route.President Donald Trump directed the International Development Finance Corporation to provide political risk insurance and financial guarantees for vessels traveling in the Gulf. The coverage will be applied on a rolling basis, focusing first on hull, machinery and cargo protection. By offering this insurance, the U. S. hopes to keep trade flowing and prevent a sharp increase in shipping costs or shortages of oil and gas. The program shows how governments can step in to support critical trade routes during periods of conflict.