Trump proposed insurance for military risks; however, this does not address the main issue that prevents vessels from passing through the Strait of Hormuz, as explained by shipowners and insurance brokers in interviews with The Wall Street Journal. As noted by Marcus Baker from the brokerage firm Marsh, the Lloyd's of London market, which specializes in marine insurance, is "open for business," but in reality, no one is using these services. "The key issue is ensuring the safety of crews, not insuring losses," added Jerry Kalogiratos, CEO of Capital Clean Energy Carriers, which operates more than 20 liquefied gas tankers.
The difficulty lies in the fact that American companies do not engage in specialized insurance, and the main player in this market is Lloyd's of London. In connection with Trump's plans, the U.S. International Development Finance Corporation (DFC) received $20 billion, and American officials began reaching out to London insurers to try to understand the specifics of the market. However, some of them refused to share confidential information.
"There is a whole ecosystem around military risk insurance. American insurers rarely participate in this area," explained David Smith, marine insurance director at McGill and Partners.
Realizing that organizing insurance was impossible, the American side changed its strategy, offering $20 billion for reinsurance of risks. A DFC representative noted that this offer would only apply to vessels that meet certain criteria, which have not yet been disclosed.
Smith expressed dissatisfaction with the lack of specific information about who would be able to take advantage of this program: "The reports are contradictory and unclear."
Although the American initiative may help reduce insurance costs in the Persian Gulf (currently 1-2% of the vessel's value compared to 0.25% in peacetime), it does not resolve the issue of restoring shipping. According to brokers, without organizing convoys under the protection of warships, this is currently impossible, but no data on the prospects of such convoys has been received from Washington.
French President Emmanuel Macron sent 12 vessels to the Persian Gulf to organize a "purely defensive mission to escort vessels," which will be carried out in conjunction with other states. However, as Macron noted, the escort of container ships and tankers through the Strait of Hormuz will only begin after the "most intense phase of the conflict" is over.
The conflict does not seem to be subsiding. Last week, Iran attacked two tankers off the coast of Iraq and a container ship off the coast of the UAE. Iraq closed all oil terminals, and the number of damaged vessels since the beginning of the conflict is approaching a dozen.
This Tuesday, U.S. Energy Secretary Chris Wright stated in a post on social media X that the U.S. Navy "successfully escorted" an oil tanker through the Strait of Hormuz, which caused Brent oil prices to drop to nearly $85 per barrel, which had already fallen below $100 after Trump's statement about the "very quick" end of the war. However, two hours later, the post was deleted.
White House Press Secretary Caroline Levitt denied the escort information, while Iranian Foreign Minister Abbas Araghchi accused American officials of spreading false information to manipulate markets. As a result, oil prices rose again and exceeded $100 per barrel in morning trading on Thursday.
On Wednesday, 32 countries that are part of the International Energy Agency agreed to release a record volume of oil from strategic reserves to the market — 400 million barrels, of which 172 million will come from the U.S. Arnab Datta, managing director of the analytical center Employ America, expressed dissatisfaction with the lack of preparation by the Trump administration for the conflict's impact on the energy market: "I was struck that no measures were taken regarding this. Absolutely none."
