The United States has launched a $20bn reinsurance program for oil tankers and commercial vessels to revive maritime traffic through the Strait of Hormuz, which has been heavily disrupted by the conflict with Iran. The scheme will be run by the US International Development Finance Corporation in coordination with the Treasury Department and the US military.

The DFC will cover potential losses for vessels transiting the Gulf on a renewable basis, with the aim of restoring flows of energy and goods. The Strait of Hormuz is a major strategic chokepoint for global trade, through which around 20% of global oil consumption and nearly 20% of liquefied natural gas exports pass.

The announcement comes as oil prices have jumped by more than 12%, rising above $90 a barrel, while maritime traffic remains very limited. Several tankers have been targeted since air strikes carried out by the United States and Israël against Iran. According to sector analysts, insurance is not, however, the main obstacle to vessels returning, with shipowners primarily concerned about security risks in the area.