economy
March 5, 2026
Lloyd's of London in talks over Trump plan to backstop ships in the Strait of Hormuz
Lloyd’s of London is in talks with the U.S. International Development Finance Corporation regarding President Donald Trump’s plan to offer political risk insurance for ships traveling through the Strait of Hormuz to permit the flow of oil despite the threats posed by the conflict with Iran.
TL;DR
- Lloyd's of London is in talks with the U.S. International Development Finance Corporation (DFC) about President Trump's plan for political risk insurance in the Strait of Hormuz.
- The plan aims to facilitate oil and gas transportation through the strait, despite threats from the conflict with Iran.
- Lloyd's spokesperson stated their focus is on providing practical, market-led solutions for war risk insurance to support shipowners and global trade.
- The DFC has precedent for providing insurance during conflicts, having done so during the Ukraine-Russia war.
- Approximately 20 million barrels of oil pass through the Strait of Hormuz daily, representing 20% of global oil trade.
- The security of shipments is a concern, with suggestions of U.S. Navy escorts, though the feasibility of escorting all tankers is questioned.
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