US Doubles Hormuz Guarantees to $40 Billion With New Partners

The expanded reinsurance program aims to restore confidence in maritime trade through the vital oil chokepoint.

Apr. 6, 2026 at 3:23pm

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A minimalist Bauhaus-style composition using bold geometric shapes in navy blue, steel grey, and amber to conceptually represent the economic and geopolitical tensions surrounding the Strait of Hormuz oil chokepoint.An expanded U.S. reinsurance program aims to incentivize shipping through the strategically vital but increasingly perilous Strait of Hormuz.Washington Today

The U.S. government has doubled its commitment to provide reinsurance guarantees for ships traveling through the Strait of Hormuz, increasing the program to $40 billion with the addition of new insurance partners including AIG and Berkshire Hathaway. The move is the latest effort to ease concerns over the vital waterway and encourage traffic to resume, despite an effective Iranian blockade and ongoing hostilities in the region.

Why it matters

The closure of the Strait of Hormuz, which typically carries about a fifth of global oil and liquefied natural gas flows, has roiled energy markets and triggered a broad crisis. Restoring confidence for shippers to move through the strait is a top priority for the U.S. as it seeks to reopen this essential oil supply line and alleviate the resulting spike in global energy prices.

The details

The U.S. International Development Finance Corp. last month announced a $20 billion reinsurance program. On Friday, the agency said Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr and CNA will join Chubb to provide an additional $20 billion in reinsurance for the agency's maritime facility. To qualify for the reinsurance, the DFC is requiring applicants to provide details on the vessel, cargo, and financing. However, the program still lacks any promise of naval escorts to provide protection for ships' crews.

  • The DFC announced the original $20 billion reinsurance program last month.
  • The expanded $40 billion program was announced on Friday, April 6, 2026.

The players

U.S. International Development Finance Corp. (DFC)

The U.S. government agency that is administering the reinsurance program to encourage maritime traffic through the Strait of Hormuz.

Chubb

One of the insurance companies that is providing reinsurance coverage as part of the DFC's maritime facility.

Travelers

One of the new insurance partners that is providing an additional $20 billion in reinsurance coverage for the DFC's program.

Liberty Mutual Insurance

One of the new insurance partners that is providing an additional $20 billion in reinsurance coverage for the DFC's program.

Berkshire Hathaway

One of the new insurance partners that is providing an additional $20 billion in reinsurance coverage for the DFC's program.

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What they’re saying

“Along with Chubb, these leading American insurers bring deep underwriting experience in marine and marine war coverage, strengthening our efforts to help restore confidence in maritime trade.”

— Ben Black, CEO, U.S. International Development Finance Corp.

“With a little more time, we can easily OPEN THE HORMUZ STRAIT, TAKE THE OIL, & MAKE A FORTUNE.”

— Donald Trump

What’s next

The DFC and its insurance partners will determine which vessels are eligible for the reinsurance facility, with a focus on providing details about the origin, destination, ownership, and financing of the ships.

The takeaway

The expanded reinsurance program is a significant step by the U.S. to try to restore confidence and encourage maritime traffic through the vital Strait of Hormuz, which has been effectively blockaded by Iran. However, the lack of naval escorts may still deter some shippers from risking the dangerous passage, and the program's ultimate success will depend on degrading Iran's military capabilities in the region.