Donald Trump’s government announced this Friday (6) a US$20 billion reinsurance program for oil tankers and other maritime vessels, in an attempt to facilitate the movement of ships through the Strait of Hormuz.
US crude oil (WTI) prices rose more than 12% on Friday, surpassing $90 per barrel, as tanker traffic in the Persian Gulf remains paralyzed due to the war with Iran.
Some Gulf countries have started to reduce production because they are unable to export their crude oil through the Strait.
A Development Finance Corporation (DFC) of the USA will ensure losses of up to US$20 billion on an ongoing basis.
“We are confident that our reinsurance plan will ensure that oil, gasoline, LNG, jet fuel and fertilizers can pass through the Strait of Hormuz so they can flow back into the world,” DFC CEO Ben Black said in a statement.
(with international agencies)
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