JPMorgan Predicts $300 Billion Insurance Need for Oil Tankers Amid Iran Conflict

JPMorgan has projected that due to the ongoing conflict with Iran, the U.S. International Development Finance Corporation (DFC) will need to provide over $300 billion in insurance coverage for oil tankers navigating the Strait of Hormuz. According to Jin10, U.S. President Donald Trump has previously pledged to support such insurance through the DFC. JPMorgan noted that this commitment will represent a contingent liability on the Treasury's balance sheet, with the impact on the fiscal deficit depending on expected loss assumptions, underwriting terms, and premiums collected. Analysts added that while the plan will increase the deficit, the rise should be relatively limited. It is estimated that each vessel will require approximately $2 billion in coverage and indemnity insurance, primarily to cover oil pollution liability and cargo claims.