The declaration was made a few days after President Donald Trump gave DFC an order to provide insurance “at a very reasonable price” to guarantee the flow of energy and other commercial trade in the Gulf as oil prices skyrocketed.
His remarks followed suggestions from other governments, notably the US, that the availability of insurance was impeding transit. Additionally, Trump stated that although no arrangements have been made yet, the US military may accompany ships in the Strait.
Along with petrol, fertiliser, and other goods, the Strait transports around one-fifth of the world’s oil flows. Oil and other fuel prices have risen as a result of Iran’s threats to attack ships attempting to pass through the strait.Also Read: Boeing on verge of a mega aircraft order for 500 ‘737 Max’ jets to China: report
Referring to the US military’s Central Command, the development agency stated, “DFC and Treasury are closely coordinating with CENTCOM on next steps in the implementation of this plan.”
“Best-in-class, preferred American insurance partners” have been found, according to the DFC.
Private insurance companies were still charging premiums to ships wishing to pass through the area even before the DFC statement. Offerings are being made, according to the Lloyd’s Market Association, on Thursday, and broker Arthur J. Gallagher & Co. stated that the London insurance market is ready and able to cover ships wishing to cross the Strait.
Insurance companies are interested in working with DFC to provide the reinsurance.
First Published: Mar 7, 2026 8:16 AM IS
