Some war risk underwriters have advised shipping companies to suspend voyages through the Strait of Hormuz, while others are reviewing policy terms after renewed attacks on commercial vessels raised fears of a wider conflict between Iran and the United States.
According to Reuters, the reassessment follows the attacks on 7 July on three tankers transiting the strategic waterway, prompting Washington to revoke a licence that had allowed Iran to sell oil and to carry out overnight strikes against Iranian targets.
Speaking on 8 June, U.S. President Donald Trump declared that an interim agreement aimed at ending the conflict with Iran was “over” and indicated that further U.S. strikes were likely later that night in response to Iranian attacks on American military bases in the Gulf. His remarks pushed global oil prices up by around 5%.
War risk insurance for vessels operating in high-risk areas is typically issued on a seven-day basis and reassessed every 24 to 48 hours. Even modest increases in premiums can add hundreds of thousands of dollars to a vessel’s daily operating costs.
According to industry sources cited by Reuters, war risk premiums for ships operating inside the Gulf have already risen from around 2% of a vessel’s value at the end of last week to nearly 3% over the past 24 hours. The sources requested anonymity due to the sensitivity of the matter.
Despite the sharp increase in premiums, there were no immediate indications that insurers had withdrawn war risk cover for vessels transiting the region.
The International Maritime Organization (IMO) also urged caution on 8 July, advising that transits through the Strait of Hormuz should be avoided as long as the safety and security of crews cannot be assured.
