Hormuz Strait Tension Raises Insurance Rates
A limited increase in marine insurance rates due to escalating tensions in the Strait of Hormuz, where mutual attacks between the United States and Iran have significantly raised insurance costs. The price of insurance against war risks now ranges between 3% and 10% of the vessel's value, compared to 0.25% before the crisis. This raises the insurance cost for a tanker valued at $100 million to between $3 million and $10 million per voyage. Such developments are considered an additional burden on maritime trade movement and increase the costs of shipping oil and gas through this vital passage.
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