A tanker sails through the Gulf near the Strait of Hormuz during the conflict between the United States, Israel, and Iran, March 11, 2026, in the United Arab Emirates. Viewed from northern Ras Al Khaimah, near the border with Oman’s Musandam Territory.
Stringer | Reuters
major insurance company Chub The company will be the lead underwriter of a U.S. government-led program to provide insurance to ships dangerously navigating the Strait of Hormuz.
The agency said Chubb will work with the U.S. International Development Finance Corporation as part of a $20 billion plan to help restart oil tankers and other commercial traffic amid risks from the Iran war.
Crude oil prices have soared Since the war began at the end of February. By mid-morning Wednesday, Brent crude oil was trading above $91 per barrel. Oil prices remain relatively high despite the International Energy Agency’s announcement on Wednesday that it would coordinate the release of 400 million barrels from member countries’ strategic oil reserves.
IEA Director-General Fatih Birol said that in normal times, 15 million barrels of oil per day pass through the strait, and an additional 5 million barrels of other petroleum products. That trend has stalled, even as companies and governments scramble to ease the pressure.
Ship crews are reluctant to use this route for fear of being attacked. The UK Maritime Trade Operations Center said on Wednesday that three ships off the coast of Iran had been attacked by projectiles.
The strait connects the Persian Gulf and the Arabian Sea, making this narrow waterway along Iran’s southern coast the only maritime route out of the oil-rich region.
“Commerce through the Strait of Hormuz plays a vital role in the global economy, and providing insurance for ships is essential to restarting trade,” Chubb Chairman and CEO Evan Greenberg said in a statement.
The company “will be the focal point for collecting all information about ships and cargo and working with us to facilitate this insurance,” said a DFC official, speaking on condition of anonymity because he was not authorized to discuss the matter publicly.
The person said, “Ultimately, DFC doesn’t have actuaries. It doesn’t have the staff who are the core of the market.”
The DFC program provides reinsurance, or secondary insurance, for insurance companies that regularly covers approximately $20 billion in losses. Chubb provides final insurance to shippers. DFC may work with more companies besides Chubb, the agency said.
There is some confusion about the scope of DFC, which is limited to potential war-related costs for covered vessels. This applies to the hull, machinery, and cargo. Analysts say ships also need to be compensated for the environmental costs of cleaning up after an oil spill.
DFC coverage also covers environmental damage, officials said. “We provide coverage built into that hull and mechanical product.”
What ultimately prevents ship movement is the real danger of proximity to combat zones. Insurance may be helpful at a high level, but if the crew members feel their lives are in danger, the ship will not move.
President Donald Trump, who said a war with Iran would be short-lived, warned on Tuesday that if Iran tried to stop shipping through the Strait of Hormuz, “it would be a 20 times bigger hit.” Earlier this week, President Trump spoke to CBS News about the strait and said, “We’re thinking about occupying the strait.”
The best case for oil prices would be an end to the conflict, but if that doesn’t happen, the United States could help by providing military escort for ships passing through the strait.
“The physical insurance that only the U.S. military can provide and the economic risks that insurance can provide need to go hand in hand,” said Rachel Ziemba, senior adviser at political risk advisory firm Horizon Engage.
