WASHINGTON: The US will provide reinsurance for losses up to USD20 billion in the Gulf region to help provide confidence for oil and gas shippers during the war on Iran, the US International Development Finance Corporation said on Friday.
President Donald Trump on Tuesday ordered the DFC to provide political risk insurance and financial guarantees for maritime trade in the Gulf after oil and liquefied natural gas tanker transit had ground to a halt in the Straight of Hormuz waterway between Iran and Oman, where ordinarily 20 percent of global oil moves daily.
The insurance will occur on a rolling basis and will initially focus on hull and machinery and cargo insurance, DFC said.
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