The U.S. International Development Finance Corp. announced on Friday a $20 billion maritime reinsurance initiative aimed at protecting shipping traffic in the Gulf region as tensions with Iran disrupt global trade routes.
The plan, approved by President Donald Trump and coordinated with the Treasury Department and U.S. Central Command, or CENTCOM, is designed to provide insurance coverage for commercial vessels traveling through the Strait of Hormuz and surrounding waters, where security risks have raised costs and uncertainty for global shipping companies.
Ben Black, chief executive of the International Development Finance Corp. — known as DFC — and Treasury Secretary Scott Bessent said the program will help restore confidence in maritime commerce while supporting American and allied businesses operating in the Middle East as the U.S.-Israeli military campaign against Iran continues.
Under the program, DFC will provide maritime reinsurance coverage for up to roughly $20 billion in losses on a rolling basis.
The revolving facility is intended to backstop insurers and make it easier for ships carrying critical commodities to continue operating in the region despite higher war-risk premiums.
The coverage will initially focus on hull and machinery protection for vessels, as well as insurance for cargo. Eligible ships must meet specific criteria set by the program.
Officials said the effort is meant to stabilize international markets and ensure the continued flow of energy and industrial supplies through the Strait of Hormuz, through which about 20% of the world's oil supply typically passes.
"I am grateful to President Trump and Secretary Bessent for their support and approval of DFC's plan to restore confidence in maritime trade and stabilize international markets," Black said in a statement.
"Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide."
Black added that the reinsurance plan is intended to ensure shipments of oil, gasoline, liquefied natural gas, jet fuel, and fertilizer can safely transit the Gulf and reach global markets.
DFC said it has already identified several U.S.-based insurance partners that will participate in the program, though the agency did not name the firms.
Treasury officials and military planners at CENTCOM are continuing to coordinate operational details for the rollout.
The initiative represents one of the largest uses of DFC financial tools to address a geopolitical security challenge affecting global commerce.
Shipping disruptions in the Gulf region have heightened concerns among energy markets and international businesses that rely on the Strait of Hormuz.
Officials said the new reinsurance framework is intended to reassure insurers and shipowners that coverage will remain available as security risks rise.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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