Maritime Premiums Surge As U.S-Iran War Widens To The Mediterranean Region

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, said that premiums change daily depending on vessel type and circumstances.

Around 1000 ships are stuck in the Persian Gulf, Arabian Gulf and the surrounding waters, half of them are tankers and gas carriers, with a combined hull value exceeding $25 billion, said Sheila Cameron, chief executive of the Lloyd’s Market Association.

Cameron also said that most of these ships are insured via the London market, and coverage for them is valid at present.

Experts also highlight that supply chains will be strained as cargo is rerouted through the Cape of Good Hope or overland routes, increasing transit times and costs.

On March 3, 2026, U.S President Donald Trump said that the U.S. Navy would escort oil tankers through the Strait of Hormuz, adding that he had directed the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the region.

It is unclear how the government would intervene or whether any scheme would apply to vessels and cargo of all nationalities.

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