Shippers Wary of Hormuz Strait Despite US Escort Plan

Shipping companies remain hesitant to traverse the conflict-prone waterway despite proposed US-backed insurance and naval support.

Mar. 31, 2026 at 6:54am

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A serene, photorealistic painting of an oil tanker ship alone in the Strait of Hormuz, with the vessel bathed in warm, golden sunlight and surrounded by deep shadows, conveying a sense of isolation and unease.As tensions linger in the Strait of Hormuz, shippers remain wary of the risks to their vessels and crews despite US government efforts to provide insurance and naval escorts.Washington Today

Shippers are doubtful about a Trump administration plan to provide US-backed insurance and naval escorts to clear passage through the vital Strait of Hormuz, as the waterway remains beset by conflict. Industry experts say shipping companies will only be willing to send cargoes through the strait once Iran's military capabilities are degraded, as the current risks are "unmanageable".

Why it matters

The Strait of Hormuz is a critical global chokepoint for oil shipments, with around 20% of the world's oil supply passing through the narrow waterway. Disruptions to shipping through the strait could have major economic and geopolitical consequences, which is why the US is seeking to provide insurance and naval support to keep the passage open.

The details

According to Bob McNally, president of Rapidan Energy Group, a Washington-based consulting firm, shippers will only be willing to insure and send cargoes through the Strait of Hormuz once Iran's military capabilities are reduced. McNally stated that "This is currently an unmanageable risk" and that "Insurance rates will fall — and the willingness of commercial operators to insure and send cargoes through the Strait will rise — only after Iran's military capabilities are degraded."

  • The Trump administration's plan to provide US-backed insurance and naval escorts was announced in early 2026.

The players

Bob McNally

President of Rapidan Energy Group, a Washington-based consulting firm.

Trump administration

The former US presidential administration that proposed the plan to provide insurance and naval escorts for shipping through the Strait of Hormuz.

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What they’re saying

“This is currently an unmanageable risk. Insurance rates will fall — and the willingness of commercial operators to insure and send cargoes through the Strait will rise — only after Iran's military capabilities are degraded.”

— Bob McNally, President, Rapidan Energy Group

The takeaway

The Strait of Hormuz remains a dangerous chokepoint for global oil shipments, and shipping companies are unlikely to fully resume operations there until the security situation improves and Iran's military threat is diminished, despite US government efforts to provide insurance and naval support.