BIMCO Says Trump’s Tanker Insurance Plan Could Encourage Gulf Transits—But Naval Escorts Face Limits

The world’s largest shipping association says a proposal by U.S. President Donald Trump to provide political risk insurance for vessels operating in the Persian Gulf could help restore some confidence among shipowners—though questions remain about how the plan would work in practice.

The comments come after Trump announced Tuesday that the U.S. government would move to provide financial guarantees for maritime trade transiting the region while also signaling that U.S. Navy escorts for tankers could begin “as soon as possible.”

Speaking about the proposal, BIMCO Chief Safety & Security Officer Jakob Larsen said the concept could potentially shift the economic calculations currently keeping many vessels out of the region.

“The announcement from U.S. President Donald Trump about selling ‘political risk insurance and guarantees for the Financial Security of all maritime trade, especially energy, traveling through the Gulf’ has yet to be explained in full,” Larsen said.

“Depending on the details of the proposal it might help tip the risk/reward ratio and stimulate more shipowners to resume operations in the high-threat area,” he added.

The proposal comes as shipping through the Strait of Hormuz has plunged following the outbreak of the conflict between the United States, Israel, and Iran over the weekend. Multiple missile and drone attacks targeting commercial vessels have pushed the regional maritime threat level to CRITICAL, according to the Joint Maritime Information Center.

At the same time, the marine insurance market has begun pulling back from the region. Members of the International Group of P&I Clubs, which collectively insure roughly 90% of the world’s ocean-going tonnage, have issued 72-hour cancellation notices for certain war-risk coverages tied to Iranian waters and nearby Gulf areas.

War risk premiums have surged sharply in recent days, while AIS data indicates vessel movements through Hormuz have fallen by roughly 90% from historical averages as operators reassess their exposure.

Tanker traffic through Strait of Hormuz down by 90%

Analysis of vessel activity indicates tanker transits are now around 90% lower than last week. Matt Wright, Principal Freight Analyst at Kpler, explains: "Unlike several other vessel segments where movements have largely… pic.twitter.com/JIhFoAkQKO

— MarineTraffic (@MarineTraffic) March 4, 2026

Trump’s proposal appears aimed directly at this insurance bottleneck, which industry analysts increasingly view as the primary factor shaping transit decisions.

The U.S. president has also suggested that U.S. Navy escorts for tankers could begin if necessary—raising the possibility of convoy-style protection reminiscent of U.S. operations during the 1980s Tanker War.

Larsen said naval escorts could reduce risk for vessels receiving protection but cautioned that escorting the entire tanker fleet operating in the region would be impractical.

“Trump’s announcement that ‘If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible’ sounds interesting and we are awaiting further clarifications on how this would unfold,” Larsen said.

“Naval escorts would help reduce the threat for the ships being protected. That said, providing protection for all tankers operating in areas currently threatened by Iran is unrealistic as this would require a very high number of warships and other military assets.”

However, Larsen noted that the relative value of naval escorts could increase if Iranian capabilities degrade over time.

“At some future point, if the Iranian threat has been degraded significantly, the relative effect of naval escorts will improve,” he said. “This might push the security risk below the risk acceptance level of some shipowners and cause some ships to resume operations in the high-threat area.”

For now, the maritime industry is waiting for more details from Washington about how the proposed insurance program and any potential escort mission would be structured—factors that could determine whether traffic begins returning to one of the world’s most important energy shipping corridors.

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