Latest News

Sources say that some war insurers recommend shipowners stop Hormuz voyages following attacks.

Insurance industry sources reported that some war underwriters advised shipping companies to pause voyages across the Strait of Hormuz, while others were reviewing their policies after renewed vessel attacks threatened a return to war between Iran and the United States.

Washington revoked a license allowing Iran oil sales and launched overnight strikes against Iranian targets after the attacks on Tuesday on three tankers on the crucial waterway.

Donald Trump announced on Wednesday, that the interim agreement to end "the war with Iran" was "over". U.S. troops were expected to launch new attacks on Wednesday night in response to Iranian attacks against U.S. base in the Gulf.

These comments caused a 5% increase in the global oil price.

According to industry sources war risk insurance is usually provided seven days a week and reviewed every 24 to 48 hours. Even slight increases can result in daily costs that are hundreds of thousands of dollars higher.

Sources who refused to be identified due to the sensitivity of the issue said that war insurance rates on ships in the Gulf had already risen to 3% from 2% last week.

However, there were no immediate signs that the war cover was being halted.

One underwriting source said, "Someone is going to cover you but at a rate of?5% or less."

On Wednesday, the U.N. International Maritime Organiztion (IMO) stated that sailings through Hormuz must be avoided as long as crew safety cannot be guaranteed.

IMO Secretary General Arsenio Dominguez stated?on?Wednesday that the high?costs of ship insurance were a major concern and "added to the pressure on shipowners & operators". He said that governments with influence over the insurance and reinsurance market have a role to?play in engaging with insurers so as to ensure premiums are based on current realities rather than reflecting the peak of crisis. (Reporting and editing by Jonathan Saul with The Insurer, Michael Jones)

(source: Reuters)