Today the PM Tarique Rahaman has urged people across the country to save electricity,gas ,water and other household necessities. The people are enjoying level best security and freedom during the newly elected government. The foreign guests are welcoming our gentle approaches. However, this is the first time , the PM has started a policy of Saving due to extreme pressure on these. He urged officials to switch off lights in the Secretariet and all followed him.
With regard to the global energy system, it is to be addressed that it is undergoing one of its most critical stress tests in decades.
A series of rapidly evolving geopolitical and economic events related to the rising tensions between the United States, Iran, and significant Gulf states are starting to transform global oil markets, financial transactions, and diplomatic relationships.
Tanker traffic through the strait has plummeted by approximately 92%, effectively halting a substantial portion of global energy flows.
Although the physical waterway has not been officially closed, the risk environment has escalated to such a degree that commercial shipping has predominantly ceased operations in the area. Tanker operators, insurers, and energy firms are reluctant to take on the considerable financial and security risks associated with operating in a potential conflict zone.
This is where a frequently overlooked aspect of global trade becomes crucial: insurance.
Without war-risk insurance, vessels simply cannot function. Insurers have been retracting coverage for ships navigating the region, resulting in a financial bottleneck that is now as critical as the military risk itself.
In response, the US administration directed the U.S. International Development Finance Corporation (DFC) on March 3 to initiate underwriting insurance policies for vessels willing to traverse the strait. The objective is to restore confidence in the shipping market and reopen one of the world’s most essential energy routes.
Nevertheless, the challenge is substantial.
According to reports, the DFC currently possesses approximately $154 billion in capacity, while the estimated exposure needed to fully underwrite shipping operations in the region could soar to $352 billion. This results in a shortfall of nearly $200 billion.
Increasing the agency’s liability cap would necessitate an act of Congress, indicating that the US government’s ability to swiftly enhance this financial support is uncertain. Until adequate insurance capacity is available, even vessels that are prepared to navigate the region may find themselves unable to get prepared with upcoming challenges.
