Macron Pursues Public Insurance for Hormuz Shipping
French talks with Gulf states aim to design a state-backed scheme to cover risk for vessels transiting the disrupted Strait of Hormuz.
Updated on Nov. 10, 2026 in Oil and Gas
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French President Emmanuel Macron is negotiating with Gulf countries, including Saudi Arabia, on a publicly backed insurance vehicle to assume part of the risk for ships moving through the Strait of Hormuz. Transport through the strait has been heavily disrupted since US and Israeli strikes on Iran began in February.
Why it matters
Attacks on vessels around the strait have curbed shipments and driven insurance costs for oil tankers to exorbitant levels. Fuel costs are also contributing to social unrest in France, giving the initiative a domestic economic stake.
Trump announced a US$20 billion (about RM81.14 billion) reinsurance programme for oil tankers earlier this year, while Qatari LNG supplied to France for the winter covers roughly 7% of the nation's average monthly gas use. The scale of the French scheme, and whether it would match the US figure, has not been disclosed.
The players
Emmanuel Macron
President of France, leading the government's negotiations with Gulf states on a publicly backed insurance scheme for shipping through the Strait of Hormuz.
Donald Trump
President of the United States, who announced a US$20 billion reinsurance programme for oil tankers earlier this year as part of the response to disrupted Gulf shipping.
The details
Discussions involve the French energy, foreign affairs, and finance ministries and are designed to create a vehicle that would assume parts of vessel insurance risk. Macron, who traveled to Bahrain, the United Arab Emirates, and Saudi Arabia last month, also secured commitments for more diesel supplies in the coming months and gas volumes through the strait remain well below normal.
Timeline
February 2026: US and Israel began strikes on Iran, disrupting transit through the Strait of Hormuz.
Earlier in 2026: Trump announced the US$20 billion reinsurance programme for oil tankers.
October 2026: Macron visited Bahrain, the United Arab Emirates, and Saudi Arabia.
Winter months (2026-27): Qatari LNG supply to France is scheduled.
Market Landscape
The French effort follows the US$20 billion reinsurance programme for oil tankers that Donald Trump announced earlier this year, positioning Paris as a potential co-underwriter alongside Washington. Its success would depend on Gulf states committing capital to a shared risk vehicle for a strait where insurance costs have stayed high due to repeated Iranian attacks on shipping.
Higher insurance and transport costs on Hormuz routes can feed into fuel prices that households pay at the pump and on heating bills. French diesel commitments and Qatari LNG deliveries for the winter months are the near-term supply assurances consumers may feel.
The takeaway
Insurance availability, not only physical supply, now shapes whether oil and gas keeps moving through the Strait of Hormuz. Watch for whether Gulf states commit capital to any shared scheme.
Further reading
For more on how energy supply disruptions reshape the market, see Oil and Gas.
Source note: This article includes information reported by The Edge Malaysia.
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