Chubb Ltd. is partnering with the US International Development Finance Corp. on a $20 billion reinsurance backstop to restore shipping through the Strait of Hormuz, a critical oil route facing severe disruption. The initiative aims to provide financial protection for vessels navigating waters affected by escalating tensions between the US, Israel, and Iran.

This massive reinsurance program represents a significant effort to stabilize global energy markets by ensuring the safe passage of oil tankers through one of the world's most important maritime chokepoints. The Strait of Hormuz handles approximately 20% of global oil shipments, making any disruption a major concern for energy markets and global trade.

The reinsurance backstop would help shipping companies manage the heightened risks of operating in the region, potentially including threats to vessels and increased insurance costs. By providing this financial safety net, the program could encourage more vessels to maintain their routes through the strait despite ongoing geopolitical tensions.