<2> Industry doubts Trump plan to insure Gulf oil tankers as Iran war halts transit
<3> US Lacks Firepower to Provide $350bn in Coverage Needed to Revive Strait of Hormuz Transits, JPMorgan Says
The proposed plan by the Trump administration to insure Gulf oil tankers against potential attacks by Iran has been met with skepticism by the industry, with many experts questioning the feasibility of providing the necessary coverage.
<4> According to a report by JPMorgan, the US lacks the firepower to provide the $350 billion in coverage needed to revive transits through the Strait of Hormuz, a critical waterway that connects the Middle East to global markets.
<5> The Strait of Hormuz has been a key transit point for oil shipments, with over 20% of the world’s oil passing through the waterway. However, the ongoing tensions between the US and Iran have led to a significant decrease in oil shipments, with many tankers choosing to avoid the area altogether.
<6> The Trump administration’s plan to insure Gulf oil tankers is seen as a way to mitigate the risks associated with transiting through the Strait of Hormuz. However, industry experts are questioning the feasibility of providing the necessary coverage, citing the high