US prepares ship insurance for passage through Strait of Hormuz

US Transportation Secretary Sean Duffy said the United States is preparing an insurance program for ships passing through the Strait of Hormuz. He reported this in a comment to CNN.

According to the American official, this is a government-backed insurance program that should help restore stable tanker traffic through the strategically important sea route.

Duffy noted that Washington is working on an insurance mechanism that will allow ships to pass through the region more safely amid growing security risks.

“As soon as we get a little more clarity on the security risks, not only the United States but also our partner countries will join us. When these escorts appear and we have insurance, you will start to see the flow of oil,” the US Transportation Secretary said.

He added that partner countries that provide escorts for merchant ships in the region may join the initiative.

According to Duffy, the insurance part of the program is already practically ready to launch. The US military is currently assessing the security situation for a possible escort of the ships.

“We are ready in terms of insurance, it is ready to launch. It could be a day, it could be a week,” he said.

Tags: insurance, Hormuz