03:43 PM EDT, 03/11/2026 (MT Newswires) -- Chubb ( CB ) will be the lead underwriter for a US government program to provide insurance to ships transiting through the Strait of Hormuz amid disruptions caused by the ongoing US-Israel war with Iran, the US International Development Finance Corp. said Wednesday.

At the end of last month, the US and Israel launched airstrikes on Iran, with Tehran targeting US military bases and energy infrastructure across countries in the Middle East and effectively shutting down the Strait of Hormuz, the world's most important chokepoint for crude flows.

The DFC program will insure losses up to $20 billion on a rolling basis for vessels that meet eligibility criteria, the international investment arm of the US government said Wednesday. Insurance will initially focus on hull and machinery, and cargo, according to the agency.

"With today's announcement, we are one step closer to restoring market confidence and resuming energy and commercial trade disrupted by the conflict with Iran," DFC Chief Executive Ben Black said.

US President Donald Trump recently directed the agency to provide political risk insurance for maritime trade traveling through the Gulf.

"DFC and Chubb ( CB ) have identified several American insurance companies to provide reinsurance policies behind Chubb ( CB ) and alongside DFC to expand market capacity," the DFC said. "Additional reinsurance partners may be announced in the coming days."

Three vessels were hit by projectiles near the strait, news outlets reported Wednesday. Iran said it launched its "heaviest operation" since the beginning of the war, as Israel started an additional wave of strikes in Iran, CNN reported.

"The commerce passing through the Strait of Hormuz plays a vital role in the global economy, and providing vessels with insurance protection is essential for resuming trade flows," Chubb ( CB ) CEO Evan Greenberg said.

On Wednesday, the International Energy Agency agreed to release a record 400 million barrels of oil to address supply disruptions triggered by the war. The Organization of the Petroleum Exporting Countries kept its oil demand forecasts intact, saying it may be too early to gauge the economic impact of current geopolitical tensions.

The closure of the Strait of Hormuz drove Middle Eastern oil producers to shut or significantly reduce production. Export volumes of crude and refined products are presently at less than 10% of pre-war levels, the IEA said. The strait is located between Oman and Iran, connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.

Brent and West Texas Intermediate crude were up 4.6% each at $91.85 and $87.26 a barrel, respectively, intraday Wednesday.

Price: 324.07, Change: -1.17, Percent Change: -0.36