The Texas Voyager oil tanker is anchored off the coast of Chevron’s El Segundo refinery in El Segundo, California on March 4, 2026.
Patrick T. Fallon | Afp | Getty Images
The Trump administration on Friday announced a $20 billion reinsurance program for oil tankers and other maritime traffic in an effort to keep them moving through the Strait of Hormuz.
US crude oil prices rose more than 12% on Friday, rising to $90 per barrel as tanker traffic in the Persian Gulf was halted due to the Iran war. Some Gulf countries have started to cut production because they cannot export their crude oil through the strait.
The US International Development Finance Corporation insures losses of $20 billion on a rolling basis. DFC and the Treasury Department said they are working closely with US Central Command to implement the plan.
“We are confident that our reinsurance plan will get oil, gasoline, LNG, jet fuel and fertilizer through the Strait of Hormuz and back into the world,” DFC CEO Ben Block said in a statement.
The strait is a major chokepoint for the world’s crude oil, with around 20% of global consumption exported through the narrow waterway. About 20% of the world’s liquefied natural gas exports also pass through the strait.
President Donald Trump said on Tuesday that the US would offer insurance to commercial ships in the Persian Gulf and US Navy convoys if needed. Several oil tankers have come under attack since the US and Israel launched massive airstrikes against Iran last weekend.
Insurance is not a major issue for shipowners right now, said Matt Wright, senior cargo analyst at consulting firm Kpler. Wright said tankers are not moving through the strait because they are worried about their physical security.
“There is little confidence that Iran’s ability to continue the war has diminished,” Wright told CNBC.
