Trump administration reportedly considered linking Strait of Hormuz escort operations to government insurance

MaticHoleFiller · 2026-03-21T23:23:46+00:00

The Trump administration had considered requiring vessels accepting naval escorts to purchase insurance provided by the U.S. government and to partner with private insurance companies through the U.S. International Development Finance Corporation. It remains unclear whether this requirement will be implemented.

MaticHoleFiller

2026-03-21 23:23:46

Abstract generation in progress

Sources familiar with the matter say the Trump administration studied a plan requiring ships seeking U.S. Navy escort through the Strait of Hormuz to purchase insurance provided by the U.S. government.

The report states that the U.S. considered making insurance a condition for Navy escort, requiring ships seeking protection to insure through a joint project operated by the U.S. International Development Finance Corporation (DFC) and private insurer AIG, rather than purchasing commercial insurance on the private market.

Insiders directly involved with the DFC revealed that these ships would be required to buy U.S. government insurance for the hull, machinery, and cargo.

It is still unclear whether the Trump administration will push forward with the mandatory insurance component of the plan.

The U.S. Department of Defense and Central Command declined to comment on whether the U.S. Navy would only escort ships insured through the DFC.

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