Insurance

The Trump administration has scrambled to stand up a $20 bn shipping reinsurance plan to smooth the reopening of the Strait of Hormuz. But until the violence ends, energy flows won’t return to normal, experts say.

Oil and gas shipments through the Strait of Hormuz have stopped. Risk from war is compounded by terminated insurance coverage for shipping through the Persian Gulf.

As insurance companies withdraw from disaster-prone areas, a Senate Committee sent a sharply-worded letter to seven insurance companies, accusing them of insuring fossil fuel projects and contributing to climate risk and a crisis that is now putting financial pressure on their own industry.