The DFC maritime reinsurance facility’s role with respect to the blockade of shipping in the Strait of Hormuz

The U.S. International Development Finance Corporation (DFC) is establishing a maritime reinsurance facility to address the situation in the Strait of Hormuz, aiming to boost confidence in maritime trade and stabilize international commerce. This facility will provide $20 billion in insurance coverage, supporting American and allied businesses operating in the Middle East. Despite recent truce, Iran is levying tolls for passage through the Strait, and the U.S. is implementing a naval blockade of Iranian ports, with Project Freedom paused to protect U.S. vessels.