economy
March 2, 2026
Maritime insurers cancel war risk cover in Gulf as Iran conflict disrupts shipping
Strait of Hormuz is effectively closed and vessels rerouted, sending some freight costs surging
TL;DR
- Leading maritime insurers have cancelled war risk cover for ships operating in the Gulf.
- The Strait of Hormuz, a vital shipping route for oil and gas, is effectively closed due to intense airstrikes.
- At least 150 vessels have dropped anchor in the region, and some tankers have been damaged.
- Freight costs have surged, with container rates significantly increasing.
- Major shipping companies are rerouting vessels away from the Red Sea and the Gulf.
- Insurance rates are expected to increase by 50% to 100% or more.
- Some companies have imposed emergency conflict surcharges on cargo.
- The disruption is causing a significant reduction in shipping capacity.
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