On the 6th local time, the U.S. government announced the launch of a maritime reinsurance program. The U.S. International Development Finance Corporation will provide rolling coverage for losses up to $20 billion, focusing on high-risk maritime protection including war risk insurance.

This initiative aims to ensure that critical energy supplies such as oil, gasoline, and liquefied natural gas can continue to flow through the Strait of Hormuz to global markets.

Reinsurance refers to “insurance for insurance companies.” Amid the current tensions, commercial insurers have withdrawn from war risk coverage in the Persian Gulf and adjacent waters, causing premiums to skyrocket.

Take a tanker valued at $200 million to $300 million as an example. Its hull war risk premium rate has soared from approximately 0.25% (roughly $625,000) before the conflict to the current 3%, amounting to about $7.5 million—a more than tenfold increase.

JPMorgan estimates that the total insurance required for tankers transiting the region could exceed $300 billion, far surpassing the $20 billion coverage offered by the United States this time.

Additionally, analysts point out: “Insurance is not the primary concern for shipowners. The main reason tankers avoid the Strait of Hormuz is that shipowners fear for their own safety.”