The U.S. insurance initiative in the Strait of Hormuz falters despite its high cost

The insurance initiative launched by the United States to bolster maritime security in the Strait of Hormuz has failed to achieve the expected results, despite an estimated cost of around $40 billion, amid the absence of any broad practical use so far and the continued rise in marine insurance premiums to levels above those seen before the regional tensions.

The initiative was launched following statements by U.S. President Donald Trump about providing insurance coverage for ships transiting the strait at a “reasonable price,” but the project has not entered full implementation because of operational complexities, in addition to the incomplete arrangements for the necessary naval escorts.

According to available information, the program’s use in its early stages was limited to just two ships whose passage was insured under what was known as “Project Freedom,” before implementation effectively receded without any notable expansion or clear continuity.