The United States is doubling its backing for ships willing to transit the Strait of Hormuz, expanding a reinsurance guarantee program to $40 billion and enlisting major American insurers including AIG and Berkshire Hathaway, the U.S. International Development Finance Corp. (DFC) said Friday. The move adds $20 billion of reinsurance capacity to the $20 billion program first announced last month, aimed at restoring maritime traffic through a corridor that typically carries roughly one‑fifth of global oil and liquefied natural gas supplies.
The DFC said Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr and CNA will join Chubb to provide the additional $20 billion in reinsurance for the agency’s maritime facility. DFC Chief Executive Officer Ben Black said the new partners “bring deep underwriting experience in marine and marine war coverage, strengthening our efforts to help restore confidence in maritime trade.” The statement marked the first substantial public detail the agency has released about the reinsurance vehicle since it was formed nearly a month ago.
The initiative is intended to encourage shippers to resume voyages through the Strait of Hormuz despite an effective Iranian blockade and what U.S. officials describe as continued hostilities in the five‑week war. The route’s partial closure has roiled energy markets, contributed to rising oil and gas prices, and strained supplies for major importers such as India. Market moves since the disruption have reflected premium pricing for immediately accessible crude and increased volatility in benchmark spreads.
Officials acknowledged, however, that insurance guarantees alone may not be enough to overcome shippers’ safety concerns. Vessel operators have expressed profound reluctance to risk crew lives while Iran continues to threaten ships with drone strikes, missiles and naval mines. Even after U.S. President Donald Trump vowed to protect vessels and declared in a primetime address that the war will soon end, many shipping companies have held back. On Friday, Trump reiterated his frustration over the closure, posting on social media: “With a little more time, we can easily OPEN THE HORMUZ STRAIT, TAKE THE OIL, & MAKE A FORTUNE.”
The DFC said it and its insurance partners will set rules to determine which vessels qualify for coverage. Applicants will be required to disclose the vessel’s origin and destination countries; the major beneficial owners of the ship and their domicile; the owner of the cargo and the cargo owner’s domicile; and details about the lenders financing the vessel. The agency did not publish the full underwriting criteria or timelines for processing applications in Friday’s statement.
Reinsurance backing from well‑known U.S. insurers is intended to underwrite the heightened risk of operating in a contested waterway and to reassure charterers and cargo owners that losses linked to war risks will be covered. Chubb was previously disclosed as an initial partner; adding other large carriers is meant to broaden capacity and diversify the program’s exposure.
Yet shipping industry analysts and operators caution that underwriting depth must be matched by operational assurances on the water. Restoring reliable, commercial transit through the strait remains a key U.S. objective because prolonged disruption has immediate impacts on global energy availability and price stability. The DFC program represents a significant financial lever, but its ultimate effect will depend on whether carriers judge the risk of attacks to have been meaningfully reduced.