Shocking Surge in Marine Insurance in the Gulf: Companies Turn to Negotiations with Iran to Secure Passage
Insurance costs rise by 500% amid escalating tensions in the Strait of Hormuz, as global supply chains face disruption
NYN | Reports and Analyses
Bloomberg has revealed an unprecedented surge in marine insurance costs for vessels transiting the Gulf region and the Strait of Hormuz, amid escalating military tensions and ongoing combat operations in the area.
According to the report, insurance premiums have jumped to around 5% of a vessel’s value—equivalent to five times the levels seen in the early days following the outbreak of the war in late February—clearly indicating the rising risks facing the global shipping sector.
Mounting Pressure on Global Trade
The agency explained that this sharp increase is placing additional strain on global supply chains, driving up the cost of transporting oil and essential goods, while supplies face accelerating disruptions due to security tensions in one of the world’s most critical maritime corridors.
Strait of Hormuz at the Center of the Crisis
This escalation comes as Iran announced the closure of the Strait of Hormuz to vessels from countries participating in military operations against it, heightening concerns among shipping and insurance companies.
Meanwhile, the United States is attempting to form an international coalition to secure maritime routes and protect transiting vessels; however, these efforts have not received broad support, amid reservations and opposition from some countries.
Shipping Companies Seek Alternatives
The report noted that many shipping companies have already begun exploring alternative solutions, including negotiating direct arrangements or informal understandings to secure safe passage for their vessels, in an effort to avoid increasing risks and minimize potential losses.
