The Trump administration unveiled a $20 billion reinsurance program to restore shipping through the Strait of Hormuz, where traffic has halted due to US and Israeli strikes on Iran. The US International Development Finance Corp. announced Friday it will deploy maritime reinsurance, including war risk coverage, to stabilize commerce in the Gulf region.

The facility will insure losses up to $20 billion "on a rolling basis" for vessels navigating the critical waterway. The strait carries about a fifth of global oil flows, along with gas and fertilizer shipments. The move follows President Trump's order for the DFC to offer insurance "at a very reasonable price" to ensure energy and commercial trade flow as oil prices surge.

Private insurers continue offering premiums for vessels in the region, with Lloyd's Market Association confirming coverage availability. The DFC has identified "best-in-class, preferred American insurance partners" for the program. The agency is coordinating with US Central Command on implementation, reflecting the military's role in potential escort operations that remain unannounced.