The US has announced a $US20 billion ($28.71 billion) reinsurance plan to cover maritime losses in the Persian Gulf region, as the conflict with Iran enters its second week.

Its International Development Finance Corporation says the maritime facility including war risk will operate on a rolling basis, initially focusing on hull and machinery and cargo.

CEO Ben Black says it will “offer a level of security no other policy can provide. We are confident that our reinsurance plan will get oil, gasoline, [liquefied natural gas], jet fuel and fertiliser through the Strait of Hormuz and flowing again to the world”.

Oil shipments have virtually stopped in the Strait of Hormuz after vessels came under attack during the conflict, which began when the US and Israel launched strikes on Iran.

The strait is one of the world’s most important fuel routes, carrying one-fifth of global oil and liquefied natural gas flows.

The International Union of Marine Insurance says the situation remains fluid, with some vessels trapped in the Persian Gulf and many operators rerouting to avoid high-risk areas.  

“Insurers will be mindful of the impact this might have on accumulations at nearby ports, as well as on the vessels and crews as they navigate longer sea routes,” the union said.

“We are likely to see disruptions to supply chains in the short term, as a result.”

The union says the granting of war cover for the Persian Gulf and Red Sea “is and will remain available under specific agreement on a single voyage basis as long as navigation is authorised by governments and flag states.

“In the current fast-paced situation, insurers will regularly re-examine their ability and willingness to provide cover.”