The U.S. Development Finance Corporation is to provide insurance and guarantees.
President Donald Trump announced a plan to secure the transit of oil tankers through the Strait of Hormuz. Lloyd’s of London, the previous insurer of the majority of the vessels traveling through the strait, had decided not to provide insurance any longer in the wake of the U.S.-Israeli military strikes and ongoing missions in Iran.
President Trump stated, “I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf.” The president also said that a U.S. Navy escort would be provided for tankers “if necessary.”
Treasury Secretary Scott Bessent said the contingency plan has been planned for months. He stated, “We will be moving out to the ship owners, to the insurance brokers, over the coming days.”
DFC Officials reported the agency is “ready to mobilize its political risk insurance and guaranty products to stabilize international commerce and support American and allied businesses operating in the Middle East during this period of conflict with the Iranian regime.”
As the Lord Leads, Pray with Us…
- For President Trump as he seeks to ensure oil tankers can continue to safely transit the Strait of Hormuz and the Persian Gulf.
- For Secretary Bessent as he oversees the process of providing insurance for tankers.
- For DFC officials as they negotiate prices on political risk insurance for oil vessels.
Sources: Business Insider, Wall Street Journal, Washington Examiner
