Treasury Secretary Scott Bessent has called JPMorgan's analysis of the U.S. government's oil insurance program 'terrible' and 'completely irresponsible,' igniting a public dispute over Gulf shipping coverage.

The disagreement centers on the Development Finance Corp.'s (DFC) capacity to provide emergency coverage for oil tankers in the volatile Persian Gulf. JPMorgan analysts estimated the DFC's remaining lending headroom at approximately $154 billion and calculated private markets are failing to provide roughly $352 billion in necessary insurance for Gulf-bound vessels, concluding the DFC's firepower is insufficient for the risk.

Bessent countered that DFC coverage is only required while vessels traverse the high-risk Strait of Hormuz and Gulf region, after which they revert to standard private insurance, dismissing JPMorgan's assumptions as 'completely flawed.'

The clash underscores the high stakes for oil markets, as any perceived shortfall in government-backed insurance could exacerbate the supply shock keeping prices near $90 per barrel. The Treasury's stance follows President Trump's order to the DFC to stabilize trade flows amid escalating U.S.-Iran tensions, and the administration's subsequent announcement of a $20 billion reinsurance program to revive Hormuz shipping traffic.

This public rift between the Treasury and Wall Street's largest bank highlights the critical importance of the DFC's role in maintaining energy market stability during geopolitical crises.