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Syrian Arab News Agency (SANA) > Latest News > International > Middle East escalation drives war-risk insurance for energy tankers up to 300%

Middle East escalation drives war-risk insurance for energy tankers up to 300%

Published: 2026/03/16 9:17 PM
Updated: 2026/03/16 9:19 PM
Middle East escalation drives war-risk insurance for energy tankers up to 300%
Ongoing conflict has turned the strait into a high-risk zone, prompting insurers to raise war-risk premiums for vessels.

Capitals, March 16 (SANA) – Military escalation between the United States and Israel on one side and Iran on the other has sharply increased security risks in the Strait of Hormuz, triggering a surge in insurance costs for energy tankers and disrupting global shipping and oil markets.

The strategic waterway normally carries about 20% of global oil trade and a significant share of fertilizer shipments. However, the ongoing conflict has turned the strait into a high-risk zone, prompting insurers to raise war-risk premiums for vessels by as much as 200–300%.

According to Marco Forgione, director general of the Chartered Institute of Export and International Trade, the region has shifted from being considered “sensitive” to persistently “hostile,” making insurance coverage and voyage viability central factors in shipping decisions.

Before the conflict, war-risk premiums ranged between 0.02% and 0.05% of a vessel’s value, but they have now climbed to 0.5–1% or more, significantly increasing shipping costs and potentially pushing up global fuel and commodity prices at a time when the world economy is already facing inflationary pressures.

Major shipping companies have begun adjusting operations in response to the risks. Firms including Maersk, MSC, CMA CGM, and Hapag-Lloyd have suspended some voyages through the Gulf, while others have diverted vessels to alternative routes, lengthening travel times and raising operational costs.

Industry analysts say shipping companies are increasingly incorporating geopolitical risk assessments into operational planning, including constant monitoring of threats, adjusting transit schedules, improving crew readiness, and strengthening emergency communication protocols.

Despite attempts to reroute vessels, alternatives remain limited due to the geography of the Gulf and the strategic importance of the Strait of Hormuz for global energy flows.

Security concerns have intensified after more than 16 vessels were reportedly damaged or attacked since the conflict began. The United States has proposed multinational naval escorts to protect commercial shipping and oil tankers, calling on energy-importing countries such as China, Japan, South Korea, France, and the United Kingdom to contribute naval assets.

However, maritime security experts caution that such measures may provide only partial reassurance, noting that risks to shipping in the region are likely to persist as long as hostilities continue.

Data from Lloyd’s List Intelligence indicate that only 77 vessels have passed through the strait since the escalation began, many linked to so-called “shadow fleets” operating outside standard insurance and tracking systems. Meanwhile, around 20 commercial vessels—including nine oil tankers—have reportedly been damaged or targeted in attacks.

Analysts warn that prolonged disruption in the Strait of Hormuz, combined with rising global trade tensions, could add further uncertainty to the world economy and accelerate efforts by governments and companies to diversify energy routes and supply chains in response to geopolitical risks.

Kh.A

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TAGGED:Gulf countriesIranIsraelMiddle EastOil pricesStrait of HormuzU.S.–Israeli strikesUnited States
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