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US Navy escorts tied to government insurance plan for Hormuz transit

Financial Times Companies •
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The Trump administration explored requiring US Navy escorts for ships through the Strait of Hormuz to be paired with US government insurance, a plan potentially generating tens of millions in revenue. The Development Finance Corporation (DFC) proposed up to $20bn in reinsurance for vessels using naval protection, aiming to replace costly private insurance. Senior industry figures believe the mandatory component could be lucrative if ships avoid Iranian attacks, though its implementation remains uncertain.

The US Navy is assessing how to provide escorts without risking its vessels to Iranian drone, missile, and fast-boat threats.