Arrangements for a US-led insurance initiative to support tankers passing through the Strait of Hormuz may require several weeks to establish, according to Marsh, reported Bloomberg.
The plan, announced by President Donald Trump, involves the US International Development Finance Corporation (DFC) providing insurance “at a very reasonable price” to help maintain energy and trade movement through the region.
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The halt in shipping traffic through the Strait has led to oil reserves accumulating in producing countries and has restricted exports from the Persian Gulf.
Marsh previously participated in arranging similar insurance for Black Sea shipping corridors, supported by the Ukrainian Government.
Marcus Baker of Marsh said: “We have spoken with the DFC earlier today and offered our assistance with the potential facility,” but also noted it “might take a few weeks to work out the details” of any arrangement.
Meanwhile, Lloyd’s of London is in discussions with the DFC regarding coverage for maritime trade in the Gulf, reported Reuters.
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By GlobalDataA Lloyd’s spokesperson said: “Lloyd’s is engaging constructively with the US Development Finance Corporation and relevant stakeholders, with a clear focus on ensuring that the Lloyd’s market continues to lead as the global centre of excellence for war risk insurance.”
The Lloyd’s Market Association (LMA) welcomed this engagement.
LMA CEO Sheila Cameron said: “Since Sunday 1 March, there have been at least 40 transits of vessels through the Strait of Hormuz.”
She provided figures indicating that around 1,000 vessels, half being oil and gas tankers with a combined hull value of more than $25bn, remain in Gulf waters. According to Cameron, most are insured on the London market and cover “currently remains in place”.
President Trump also suggested that US Navy escorts could be considered for vessels moving through the Strait of Hormuz, a critical route for global oil and gas transport.
India is holding discussions with the US regarding marine insurance for ships transporting oil from the Middle East, reported Reuters, citing a government official.
The move aims to protect Indian buyers from possible supply interruptions stemming from ongoing tensions in the Gulf.
“So far we are comfortable,” noted the official, who requested anonymity.
The official added that the Oil Ministry is engaging with key producers and traders to ensure continued access to oil, liquefied petroleum gas and liquefied natural gas.
