Marine insurers are pulling war risk coverage for ships in Iranian waters, the Gulf, and nearby routes as regional tensions escalate.
This follows a series of attacks on vessels and regional strikes, heightening security risks along a key global energy corridor, according to Reuters on Monday, citing official notices from top insurers.
Shipowners operating in these waters now confront increased operational and financial risks.
According to the report, leading marine insurers, Gard, Skuld, NorthStandard, London P&I Club, and American Club, issued notices on March 1 announcing the cancellation of war risk coverage.
“As a result of the incidents, marine insurers are cancelling war risk coverage for vessels and oil shipping rates are set to surge further.
“Companies including Gard, Skuld, NorthStandard, the London P&I Club and the American Club said their cancellations would take effect from March 5, according to notices dated March 1 on their websites.
“War risk cover will be excluded in Iranian waters, as well as the Gulf and adjacent waters, according to the notices,” the Reuters report read in part.
Skuld said it is exploring ways to offer alternative insurance under new terms, which could include stricter conditions or higher premiums for coverage in these high‑risk areas.
In a related development, Japan’s MS&AD Insurance Group has suspended underwriting war‑risk policies for waters around Iran, Israel and neighbouring countries, tightening the availability of maritime insurance for key trade routes.
Shipping through the Strait of Hormuz—responsible for roughly one-fifth of global oil and large volumes of gas, has slowed sharply.
MarineTraffic data shows at least 150 vessels, including oil and LNG tankers, anchored in the Strait and nearby waters.
Tankers have concentrated off the coasts of Iraq, Saudi Arabia, and Qatar. Iran’s navigation restrictions have prompted Asian governments and refiners to reassess oil stockpiles.
Brent crude futures have jumped over 7 per cent on concerns of a prolonged closure and ongoing attacks.
