The rates of Maritime insurance premiums for war-related risks have drastically increased since the US-Iran war engulfed the entire Middle East.
In some cases, it rose by over 1000%, leading to a consequent increase in the cost of shipping energy supplies through the Strait of Hormuz, through which 20% of global oil supply passes.
The surge in insurance premiums shows that the war is raising costs for shipowners, traders and energy companies, which are moving cargo through the Strait of Hormuz, fuelling concerns that a prolonged crisis could lead to inflation globally.
Analysts say that premiums might increase if the war continues.
Cargo-war risk insurance rates are also rising, with quotes being revised on a voyage-by-voyage basis, especially for energy and bulk commodity shipments.
Most tankers are valued at $200 to $300 million, and a new insurance rate of 3% would imply a hull war-risk premium of $7.5 million, compared with 0.25% earlier, which was around $625,000 before the conflict began.
Angus Blayney, divisional director for marine at Gallagher,
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