The U.S. International Development Finance Corporation (DFC) and the U.S. Treasury Department unveiled a plan to deploy maritime reinsurance, including war risk, in the Gulf region, which has been approved by President Trump.
The new agreement was announced by DFC Chief Executive Officer (CEO) Ben Black and US Treasury Secretary Scott Bessent.
The program is designed to work closely with Central Command to restore confidence in maritime trade, help stabilize international commerce, and support U.S. and allied businesses operating in the Middle East during the ongoing conflict with Iran.
The DFC reinsurance facility will provide rolling coverage for losses of up to $20 billion, with rotating insurance products available only to ships that meet the criteria. Initially, the facility will focus on hulls, machinery and cargo.
The announcement also states that DFC has identified best-in-class, preferred U.S. insurance partners and that DFC and Treasury are coordinating closely with Central Command on next steps to implement the program.
This announcement advances President Trump’s directive to ensure the continued flow of trade using the DFC’s innovative financial toolkit.
If readers recall, last week President Trump directed the DFC to provide political risk insurance and financial guarantees for all maritime trade, especially energy cargoes passing through the Strait of Hormuz, with the aim of stabilizing global energy flows and mitigating maritime security risks.
DFC CEO Ben Black said: “I thank President Trump and Secretary Bessant for their support and approval of DFC’s plan to restore confidence in maritime trade and stabilize international markets.
“Working with Central Command, DFC Insurance will provide a level of security that no other policy can provide. We believe our reinsurance program will allow oil, gasoline, liquefied natural gas, jet fuel and fertilizer to flow to the world again through the Strait of Hormuz.”
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