The situation in the Strait of Hormuz, a narrow waterway that provides passage to one-fifth of the world's oil supply and is a key route for other commodities like aluminum, sugar and fertilizer, has caused significant operational challenges as over 150 vessels have been forced to anchor or reroute, leading to a coverage gap that is increasing the cost of safe passage. Insurance broker Marsh Risk reported that rates have surged from 0.25% of the value of the ship as of Tuesday, with more increases expected due to increased tensions. The U.S. International Development Finance Corporation has been offered insurance to ships traveling through the gulf, pledging to support commercial shipping charterers, shipowners, and maritime insurance providers to minimize market disruptions and ensure the free flow of goods and capital. The situation could impact global economic stability, including mortgage rates, which have dropped in the weeks leading up to the war and dipped below 6% since 2022. The combination of slower growth and higher inflation, known as stagflation, could cause uncertainty for the Federal Reserve, which has been trying to bring inflation down to its 2% target.