S. President Donald Trump in tandem with Israel has paralyzed traffic in the Strait of Hormuz, with Tehran vowing to fire on any ship trying to pass through. About 500 oil and gas tankers, 500 container ships, and six cruise ships have been trapped on either side of the Hormuz channel since Iran made it a no-go zone, and only 66 ships have made it through since the war started.
In normal times, roughly a fifth of global oil supplies and seaborne gas shipments use the route, and at least nine vessels have suffered damage in the strait. Maritime insurance premiums are soaring, with prices up more than 1,000 percent in some cases. 25% before the conflict began, according to broker Marsh.
Analysts at Jefferies said it is their base case that all ships currently in the Gulf will have had their policies cancelled and reinstated at much higher prices. Lloyd's of London still provides insurance cover for hull and cargo in the Persian Gulf and Gulf of Oman, including the strait, and has not stopped providing contracts, although at the right tariff. S.
S. insurers on it, but analysts have cast doubt on its effectiveness. S.
administration, and other allies to try to reopen the strait and ensure insurance products are available at right prices, noting that the current issue is not so much insurance but the safety of captains and crews.