By Anita Hamilton
Several big-name firms joined the U.S.'s reinsurance plan aimed at limiting losses to shippers who transport oil and other cargo through the Strait of Hormuz. As a result, any losses will be insured up to $40 billion, double the original amount announced in March.
Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr, and CNA have partnered with the U.S. International Development Finance Corporation to insure eligible vessels for damage to their hulls and cargo, as well as for liability involving injuries to people or other property.
The added coverage includes new protection specifically related to wartime conditions in the form of war hull risk insurance, protection and indemnity, and cargo insurance. This additional insurance wasn't included in the original announcement.
"This public-private partnership brings stability to maritime trade at a critical moment," Travelers CEO Alan Schnitzer said.
Chubb, which was the first insurer to join the program on March 11, will insure $20 billion of the losses along with the new partners. The DFC will insure the rest. Chubb will be the lead underwriter managing all claims. It will also "determine pricing and terms, assume risk, and issue policies for eligible vessels and cargo," the DFC said.
Notably missing from the announcement is what makes boats eligible for coverage. What's more, the program hasn't yet commenced. The DFC said that an application portal will open soon.
Shipping through the Strait of Hormuz has slowed to a trickle since the Iran war. Earlier this week, five ships passed through the international waterway during a 24-hour period, compared with the prewar volume of around 150.
President Donald Trump has given mixed messages on whether the Strait's reopening is a condition for ending the war. On Tuesday, he told U.S. allies unwilling to help with the war efforts to " go get your own oil" from the strait. On Wednesday, he indicated the U.S. would be " blasting Iran into oblivion" until the strait reopens.
In another pivot Friday morning, Trump wrote on Truth Social, "With a little more time, we can easily OPEN THE HORMUZ STRAIT, TAKE THE OIL, & MAKE A FORTUNE. IT WOULD BE A "GUSHER" FOR THE WORLD???."
Write to Anita Hamilton at anita.hamilton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 03, 2026 11:20 ET (15:20 GMT)
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