Shippers See ‘Unmanageable Risk’ as Trump Aims to Reopen Hormuz

Shippers remain doubtful of a wholesale return to the Strait of Hormuz while it remains beset by conflict, throwing cold water on a Trump administration plan for US-backed insurance and naval escorts to clear passage through the vital waterway.

“This is currently an unmanageable risk,” said Bob McNally, president of Rapidan Energy Group, a Washington-based consultant firm. “Insurance rates will fall — and the willingness of commercial operators to insure and send cargoes through the Strait will rise — only after Iran’s military capabilities are degraded.”