Beasant: The U.S. Hormuz Strait Shipping Insurance Program is about to launch

LootboxPhobia · 2026-03-27T01:24:24+00:00

U.S. Treasury Secretary Janet Yellen announced the launch of an insurance program aimed at enhancing shipping safety through the Strait of Hormuz, involving naval escort and insurance guarantees, although no beneficiary ships have yet passed through the strait. This move is during the Iran conflict period, intended to alleviate concerns over oil supply shortages and price hikes.

LootboxPhobia

2026-03-27 01:24:24

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Investing.com - U.S. Secretary of the Treasury Scott Bessent announced on Thursday that the American insurance plan aimed at promoting shipping through the Strait of Hormuz will be launched soon.

Bessent made the announcement at a White House cabinet meeting with President Donald Trump. The plan was first announced by Trump on March 3 and involves the U.S. International Development Finance Corporation providing insurance guarantees, along with naval escort, to ensure the safe passage of oil tankers and other ships through the strait.

“Oil market supplies are ample. We have taken action to ensure that oil stranded at sea can enter the global market,” Bessent said. “Your bold initiatives, such as developing a maritime reinsurance program through the finance corporation in cooperation with the Central Command, will soon provide unprecedented security for shipping companies passing through the Gulf region.”

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The strait is a vital chokepoint for about one-fifth of the world’s oil and natural gas flows. Although the plan was announced over three weeks ago, there is no evidence that any ships benefiting from the plan have yet passed through the strait.

Bessent made these remarks amid growing concerns over rising oil and natural gas prices during the Iran conflict. Trump had previously threatened to strike Iran’s power plants, and the plan was later delayed, prompting the Islamic Republic of Iran to vow to completely close the Strait of Hormuz and respond by attacking regional energy facilities.

On Wednesday, Trump said that as part of negotiations with Iran, the country had made a gift. Today, the president clarified that this gift was allowing 10 oil tankers to pass through the strait.

Since the U.S.-Israel conflict with Iran began, Iran has repeatedly announced the closure of the Strait of Hormuz, effectively halting all shipping through this critical global energy route.

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