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Sources say that the cost of insurance for Israel war-risk ships has risen after Iranian attacks

Industry sources reported on Tuesday that war risk insurance premiums are up to three times more expensive for shipments going to Israel as the conflict between Israel and Iran enters its fifth day.

They said that the cost of a 7-day trip to Israeli ports ranged from 0.7% to 1.00 % of the ship's value, as opposed to around 0.2% last week.

Underwriters may price risks and rates differently. This will result in tens or thousands of dollars extra per day for each voyage.

David Smith, the head of marine at insurance broker McGill and Partners said that rates for calls to Israel depend on a number of factors, including cargo, port, and ownership.

Israel imports most of its goods via sea routes. These include Ashdod in the Mediterranean, near Gaza, Haifa to the north and Eilat on the Red Sea.

Israel's Bazan Group closed its Haifa refinery on 16 June after an Iranian attack damaged its power station.

MarineTraffic's ship tracking data showed that on Tuesday, nearly 30 vessels - many of them general cargo ships - were anchored in Haifa Bay.

An Israeli source in the port industry in Haifa said that all terminals were fully operational and operating normally.

Due to the increased risk, many shipping companies have already decided to avoid sailing to Israel.

Yemen's Iran backed Houthis said they would attack any Israel linked vessels in spite of a ceasefire reached over U.S.-UK-linked ships on the Red Sea.

In response to Israel's continuing conflict in Gaza, the militia announced a "maritime blocade" of Haifa in March. (Reporting and editing by Emelia Sithole Matarise and David Evans).

(source: Reuters)