Cargo Ship Insurers Cancel War Risk Policies for Vessels in Persian Gulf and Strait of Hormuz, Expected To Raise Premiums by Up to 50%
The ‘war risk’ for cargo ships in the Middle East has escalated considerably.
With the ongoing military conflict between the US, Israel and Iran, commercial shipping in the conflict area has become a much more dangerous affair.
Now, news has arisen that insurers are telling ship owners that they will cancel policies and raise coverage prices for vessels travelling through the Persian Gulf and Strait of Hormuz.
JUST IN – Iranian state media confirms that Iran struck an oil tanker in the Gulf of Oman because “it intended to pass through the Strait of Hormuz despite warnings” and says “all 20 crew members were evacuated.”pic.twitter.com/axpKK2hG0B
— Disclose.tv (@disclosetv) March 1, 2026
Financial Times reported:
“War risk insurers on Saturday submitted cancellation notices for policies covering ships moving through the key oil chokepoint, brokers told the FT, with prices set to rise as much as 50 per cent in the coming days.
The unusual move to submit these notices before trading resumes on Monday underscores the pace of escalation after Iran launched retaliatory strikes against US bases across the Middle East.”
Strait of Hormuz — Welp! When the biggest shipper in the world announces full suspension, expect insurance premium to rise sharply.https://t.co/dOlE8NCOjo pic.twitter.com/I5Pxv2jw2E
— JaguarAnalytics (@JaguarAnalytics) March 1, 2026
Insurance prices could rise by 50%.
“For a $100mn vessel, this would mean an increase from $250,000 to $375,000 per voyage.
[…] Cargo war risk insurers — which cover commodities carried on tankers, such as grain and oil — also said that they were preparing to cancel policies on Monday.”
Many ship owners are turning away from the Strait of Hormuz, a shipping lane through which about a fifth of the world’s crude oil flows.
To everyone wondering why ships are holding up outside the Strait of #Hormuz right now, the reason is WAR RISK INSURANCE!
Right now, every major Protection and Indemnity (P&I) Club is notifying their clients of the need for additional protection (AP).
You see, the shipping… https://t.co/9KRIU3lBcL pic.twitter.com/yJJwVgOFZb
— Sal Mercogliano (WGOW Shipping) (@mercoglianos) February 28, 2026
Read more:
Iran’s IRGC Reportedly Warning Ships that Passage Through the Strait of Hormuz Is ‘Not Allowed’
The post Cargo Ship Insurers Cancel War Risk Policies for Vessels in Persian Gulf and Strait of Hormuz, Expected To Raise Premiums by Up to 50% appeared first on The Gateway Pundit.