Chubb CEO Evan Greenberg said on Sunday that as the United States continues efforts to secure the Strait of Hormuz, a vital waterway, shipping traffic through the strait is expected to gradually increase, but significant risks remain.
In a recent interview, he emphasized that the situation remains highly volatile as U.S. and Iranian officials are negotiating regional security and freedom of navigation.
For context, according to reports from CCTV News and other media, delegations from the United States and Iran held talks on Sunday in Bürgenstock, Switzerland. However, U.S. President Donald Trump once again inopportunely acted as a “stumbling block” in this matter.
Trump posted on social media platforms that day, warning Iran to immediately cease its “proxy” actions in Lebanon, or the United States would again launch a fierce strike against Iran, “like last week, but even more intense.”
Additionally, Trump said in an interview that day that if the United States and Iran fail to reach an agreement, the U.S. would become the “guardian” of the Strait of Hormuz and collect 20% of the Middle East’s oil revenue. Other sources reported that Trump spoke with Iranian officials on the evening of the 20th, warning them not to close the Strait of Hormuz.
According to Iranian sources, the Iranian delegation protested Trump’s threatening remarks to the U.S. side, left the venue, suspended negotiations that had been ongoing for 80 minutes, and shifted to internal consultations. Meanwhile, the head of the Iranian delegation, Speaker of the Islamic Consultative Assembly Mohammad Bagher Ghalibaf, posted on social media, saying, “They had better watch their words; our armed forces are ready to respond to them in different ways.”
A source close to the Iranian negotiating team stated that if Israeli forces continue military operations in Lebanon and Lebanon’s territorial integrity is not guaranteed, the Strait of Hormuz will not reopen.
For investors, developments in the Strait of Hormuz are crucial, as the waterway handles a significant portion of global oil exports. Any disruption could affect energy prices, transportation costs, insurance premiums, and the profit outlook for companies across industries such as energy, transportation, and manufacturing.
Greenberg said, “The situation changes every day, every hour.”
He further explained, “Mines are the biggest uncertainty in the strait,” noting that despite efforts to expand safe transit routes, shipping remains restricted.
“We are now talking about a war-zone-like environment. Currently, only a narrow channel is available for passage, so the number of vessels entering and exiting is limited. The navy has been working to open wider channels, and as these channels open, shipping volume will increase,” he added.
Despite ongoing tensions, commercial traffic continues. U.S. military officials said that on Saturday, dozens of commercial vessels and millions of barrels of oil passed through the Strait of Hormuz.
In response to the escalating risks, Lloyd’s of London and Chubb recently launched a $400 million marine war risk insurance facility to cover voyages through the Strait of Hormuz. Chubb has also participated in a U.S.-backed reinsurance program aimed at providing additional support for shipping and trade in the region.
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