$20 billion for the return of the tankers. Washington wants to restore shipping through the war-torn Ormuz Strait

After the attack on Iran and destabilising the entire region, Donald Trump offers a $20 billion reinsurance program to shipowners, which is designed to prompt ships to return to the waters of the Ormuz Strait – today one of the world's most dangerous maritime routes.

$20 billion to get the tankers back on the road

The administration of President Donald Trump announced the launch of a $20 billion reinsurance program for tankers and other merchant ships operating in the Gulf region. The objective of this financial mechanism is to encourage shipowners to re-use the shipping route by the Ormuz Strait.

The scheme is intended to cover the insurance of losses incurred by entities oil transport oil, petrol, liquefied natural gas, aviation fuel and fertilizers. It is to be implemented by the American Financial Corporation for International Development (DFC), which is to take over some of the financial risks associated with shipping activities in these waters.

Washington convinces that through this mechanism, merchant ships will again start traversing this key maritime route for the global economy.

This undoubtedly leads to reflection. First, the country is waged by war in a region through which one of the world's key arteries of shipping runs, and then it encourages shipowners to direct their ships through the world's most dangerous maritime route at risk.

War stopped shipping

The Gulf oil tankers movement practically died a week ago after the escalation of the conflict between the United States, Israel and Iran. After a series of raids carried out on Iranian targets, the security situation in the region deteriorated rapidly.

Almost ten ships left. attacked, and shipowners have suspended their decisions to direct units by the Ormuz Strait area. As a result, hundreds of tankers remain blocked in Gulf ports.

It is estimated that under normal conditions, around one hundred tankers and merchant ships pass through this narrow reservoir each day. Today, much of this movement has been paralyzed.

World’s Most Important Energy Arteries

The importance of the Ormuz Strait for the global economy is difficult to overestimate. Through this narrow passage between the Persian Gulf and the Indian Ocean passes about 20 percent. Global trade Oil.

A similar share concerns the export of liquefied natural gas. In practice, this means that any major blockade of shipping in this area immediately impacts on energy markets.

Little wonder, then, that oil prices began to rise rapidly as soon as information about the halt to the oil tankers' movement appeared.

The problem is not insurance.

Washington argues that the reinsurance package will address the lack of insurance for ships operating in the region. Only that, according to analysts, these are not the biggest problems of shipowners today.

We have already written about the risk scale for shipping in the Ormuz Strait area on our website (link to text).

Maritime experts point out a much simpler reason for stopping shipping — real concerns about ship and crew safety.