US’ Hormuz Insurance Initiative Proves Unprofitable — Report
The Strait of Hormuz
US companies have not insured a single vessel passing through the Strait of Hormuz, despite the plans of US President Donald Trump, the Financial Times reported, citing sources.»The up to $40bn program has not yet been used at all… even as insurance rates have been stuck at multiples of their prewar levels,” the report said. In March, after Iran shut down the Strait of Hormuz, President Donald Trump said the US would provide insurance to ships willing to transit the region at “a very reasonable price.”The program failed to launch because it did not meet the necessary transit requirements and depended on a US naval escort arrangement that never came together.
Only two vessels received US military escort through the strait in early May under the short-lived “Project Freedom” initiative, the report added.
US-Israel War on IranTrump Pauses Project Freedom, Keeps Hormuz Blockade in Force6 May, 03:27 GMT
