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Cargo Ship Insurers Cancel War Risk Policies for Vessels in Persian Gulf and Strait of Hormuz, Expected To Raise Premiums by Up to 50%

March 1, 2026

Silhouettes of fishing and cargo ships on a shimmering ocean under a cloudy sky, capturing a tranquil maritime scene.

Silhouettes of fishing and cargo ships on a shimmering ocean under a cloudy sky, capturing a tranquil maritime scene.
Ships in the Persian Gulf – Wiki Commons

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.

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.”

Oil rigs illuminated at sunset over calm ocean waters, creating a stunning contrast against the vibrant orange sky.
Insurance costs for shipping in the region are expected to surge.

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.

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.