Summary
Insurance companies are stopping war risk coverage for ships traveling in the Middle East Gulf due to a conflict involving the U.S., Israel, and Iran. This conflict has damaged ships and disrupted the flow of oil and gas, causing energy prices to rise. Insurance costs are also increasing, adding to the overall cost of shipping in the region.
Key Facts
- Insurance companies are cancelling war risk coverage in the Middle East Gulf.
- A conflict involving the U.S., Israel, and Iran is affecting shipping in the area.
- The Strait of Hormuz has nearly stopped shipping after being hit by attacks.
- At least five tankers have been damaged, two people killed, and 150 ships stranded.
- Rising energy prices are a result of the conflict; Brent crude oil prices increased by 13%.
- About 10% of the world’s container ships are caught in shipping delays.
- Marine insurers are charging higher war risk premiums, increasing shipping costs significantly.
- Some ships have been attacked, including those flagged under various countries, causing damage and casualties.
