Efforts by the United States to secure shipping lanes through the Strait of Hormuz are expected to enable a gradual increase in vessel traffic, though significant security risks persist, according to a leading shipping insurer.

Evan Greenberg, chief executive of Chubb Ltd., a major commercial shipping insurer, described conditions in the strait as volatile and likened the situation to a war zone. Speaking on a news program Sunday, Greenberg highlighted the ongoing threat posed by mines, which he identified as one of the greatest uncertainties affecting vessel movement in the area.

The Strait of Hormuz, a critical chokepoint for global oil shipments, has seen fluctuating levels of maritime traffic amid heightened tensions between the United States and Iran. Greenberg noted that only a narrow channel is currently used for transit, limiting the number of ships that can pass through. Efforts by the U.S. Navy to reopen additional channels aim to increase shipping capacity over time.

The security dynamics remain precarious as U.S. and Iranian negotiators resumed talks Sunday in Switzerland. These discussions focus on reaching a permanent ceasefire and ensuring free passage through the waterway, which Iran recently declared closed once again, underscoring the ongoing challenge of maintaining open trade routes.

Despite these tensions, commercial activity in the Strait of Hormuz continued. The U.S. Central Command reported an uptick on Saturday, with 55 merchant vessels transiting the strait and approximately 17 million barrels of oil moving through the channel. This underscores the strategic importance of the strait in global energy supply.

In response to the heightened risks, Lloyd’s of London Ltd. and Chubb recently launched a $400 million marine war risk consortium to provide insurance coverage for companies operating in the area. In addition, the U.S. International Development Finance Corporation unveiled a $20 billion reinsurance program in March, which Chubb and other insurers joined in April to bolster available financial backing for maritime risk in the region.

The U.S. military has maintained a protective presence, regularly defending commercial ships against threats in the strait. Part of this strategy includes guiding vessels along a route close to Oman’s coast with their navigation signals turned off, a measure designed to enhance security while facilitating the flow of oil and cargo.

The situation remains fluid, with efforts to stabilize the region ongoing, but the Strait of Hormuz continues to be a focal point of geopolitical friction with direct implications for international shipping and energy markets.