Trump’s Hormuz ship insurance facility has done $0 business

May 16, 2026 - 04:13

A $40 billion maritime insurance facility created by the Trump administration to help ships transit the Strait of Hormuz has not written a single policy since its launch. The program, announced in 2019 as part of the "Operation Sentinel" maritime security initiative, was meant to provide affordable war-risk insurance for vessels moving through the strategic waterway. But industry sources confirm that uptake remains at zero, largely because the scheme never included the one thing shippers actually need: naval escorts.

The facility was designed to lower insurance premiums for tankers and cargo ships traveling near Iran, where tensions have periodically led to seizures and attacks. Without a visible military presence to deter Iranian patrol boats, however, private insurers still charge prohibitive rates. Shipping companies have instead opted for alternative routes, rerouting through longer and costlier passages, or simply paying the higher premiums from commercial markets.

Critics say the program was a political gesture rather than a practical solution. The absence of any claims or issued policies means the government never had to put up the promised $40 billion in backing. The Strait of Hormuz remains a chokepoint for about 20% of the world's oil, but the insurance facility has become a footnote in the broader debate over how to protect commercial shipping in volatile waters.