Evan Greenberg, CEO of Chubb, expects shipping traffic through the Strait of Hormuz to gradually increase, but risks remain. He said, “We are now talking about a war-zone-like environment. Currently, there is only one narrow channel available for passage, so the number of vessels entering and exiting is limited. The navy has been working to open a wider channel, and as the channel is opened, shipping volume will increase.”
June 22 – Evan Greenberg, CEO of Chubb, said on Sunday that with the United States continuing its efforts to secure the Strait of Hormuz, shipping traffic through the vital waterway is expected to gradually increase, but significant risks remain.
During a recent interview, he stressed that the situation remains highly unstable as US and Iranian officials negotiate on regional security and freedom of navigation.
As background, according to reports from CCTV News and other media, delegations from the United States and Iran held negotiations in Bürgenstock, Switzerland, on the 21st. However, US President Donald Trump inopportunely acted as an obstacle.
On the same day, Trump posted on social media, warning Iran to immediately halt its “proxy” operations in Lebanon, or the US would launch another heavy strike on Iran, “like last week, but even more intense.”
Additionally, Trump said in an interview that if the US and Iran fail to reach an agreement, the US would act as the “guardian” of the Strait of Hormuz and collect 20% of the Middle East’s oil revenues. According to other reports, Trump spoke with Iran on the evening of the 20th, warning against closing the Strait of Hormuz.
According to Iranian sources, the Iranian delegation protested to the US side over Trump’s threatening remarks, left the venue, suspended the negotiations that had lasted 80 minutes, and turned to internal consultations. Meanwhile, the head of the Iranian delegation, Mohammad Bagher Ghalibaf, Speaker of the Islamic Consultative Assembly, wrote on social media that “they had better be cautious in their words and actions; our armed forces are ready to respond to them in different ways.”
A source close to the Iranian negotiation team said 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 because the waterway carries a significant portion of global oil exports. Any disruption could affect energy prices, shipping costs, insurance premiums, and the earnings prospects of companies across the energy, transportation, and industrial sectors.
Greenberg said: “The situation is changing every day, every hour.”
He further explained that “naval mines are the biggest uncertainty in the Strait,” and noted that despite efforts to expand safe transit routes, shipping remains constrained.
“We are now talking about a war-zone-like environment. Currently, only one narrow shipping lane is available, so the number of vessels entering and exiting is limited. The navy has been working to open wider lanes, and as those lanes open, shipping volume will increase,” he added.
Despite ongoing tensions, commercial traffic continues. U.S. military officials said that dozens of merchant vessels and millions of barrels of oil passed through the Strait of Hormuz on Saturday.
In response to rising risks, Lloyd’s of London and Chubb recently launched a $400 million marine war risk insurance facility covering voyages through the Strait of Hormuz. Chubb also participates in a U.S.-backed reinsurance program designed to provide additional support for shipping and trade in the region.
