Trump admin announces $20 billion insurance program for oil tankers
CNBC • • general
Key Points:
- The Trump administration announced a $20 billion reinsurance program to support oil tankers and maritime traffic through the Strait of Hormuz, aiming to resume vessel movement in the strategic waterway.
- U.S. crude oil prices surged over 12% to above $90 per barrel due to halted tanker traffic in the Persian Gulf amid ongoing conflict with Iran, prompting some Gulf countries to reduce oil production.
- The U.S. International Development Finance Corporation (DFC) will insure losses up to $20 billion, working closely with the Treasury Department and U.S. Central Command to implement the plan.
- Despite the insurance offer, experts note that security concerns, not insurance availability, are the main reason tankers avoid the Strait, as confidence in
