World News
US Government to Provide Insurance for Ships Passing Through Strait of Hormuz
The US government is set to provide insurance to ships passing through the Strait of Hormuz, in an effort to keep energy shipments flowing despite the conflict in the Middle East.
President Donald Trump announced the decision in a social media post on Tuesday, adding that the US Navy may also provide escorts through the strait.
"Effective immediately, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the financial security of all maritime trade, especially energy, travelling through the Gulf," President Trump said.
"This will be available to all shipping lines.
"If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible."
Companies with ships passing through the region have faced insurance policy cancellations and sharp price rises in the past few days as the insurance industry reevaluates the risks involved in operation near Iran's waters.
Iran appears to be attempting to stop all traffic of commercial ships through the Strait of Hormuz - a key maritime chokepoint that normally sees 20% of global oil shipments passing through it.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 574.50 | 53.00 | 810.50 | 101.00 |
| Rotterdam | 531.00 | 41.50 | 812.00 | 92.00 |
| Houston | 553.00 | 58.50 | 819.50 | 109.50 |
| Fujairah | 564.00 | 44.50 | 881.00 | 103.50 |
| Global 20 Ports Average | 587.50 | 44.00 | 877.50 | 80.00 |
| Global 4 Ports Average | 555.50 | 49.50 | 831.00 | 102.00 |
| Global Average Bunker Price | 604.50 | 28.50 | 873.50 | 44.00 |
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