Trump’s $20B reinsurance plan for Hormuz tankers faces questions of sufficiency

Trump unveiled up to $20 billion in U.S. Development Finance Corporation-backed reinsurance to help oil tankers navigate the Strait of Hormuz amid Iran-related conflict, covering hull, machinery and cargo for qualifying vessels. Analysts doubt the size and scope will be enough to unlock passage or calm markets, noting only a subset of ships would be insured, current traffic through Hormuz is about eight ships per day (roughly 94% below normal), and JP Morgan warns storage-tightening disruptions could force multi‑million-barrel-per-day production cuts as global oil flow remains vulnerable. Investors remain skeptical until clearer eligibility rules are announced and broader drone/war risks are mitigated.