JPMorgan: U.S. International Development Finance Corporation may need to assume $300 billions in tanker insurance

Golden Ten Data reported on March 4 that JPMorgan expects, due to the Iran conflict causing private insurance companies to withdraw, the U.S. International Development Finance Corporation (DFC) will need to provide insurance coverage totaling more than 300 billions USD for oil tankers crossing the Strait of Hormuz. Previously, President Trump had pledged to provide such insurance support through the DFC. JPMorgan pointed out: "This commitment will constitute a contingent liability on the Treasury's balance sheet, and the impact on the fiscal deficit will depend on assumptions about expected losses, underwriting terms, and premiums collected." Analysts added that while the plan will increase the deficit, "the increase should be quite limited." It is estimated that each of these vessels will require approximately 2 billions USD in insurance coverage and compensation, mainly to cover oil pollution liability and cargo claims.