Gulf Tensions Surge as War Risk Coverage Withdrawn
Amid escalating Iran conflict, insurance companies are pulling war risk coverage for Gulf vessels, affecting global oil and gas shipping. This disruption, with damaged tankers and halted navigation, has spiked oil prices and stranded over 150 ships, raising costs and unsettling energy markets.
Insurance companies are withdrawing war risk coverage for vessels operating in the Gulf as escalating tensions between Iran and other nations disrupt shipping routes. The conflict has already damaged several tankers, killed a seafarer, and left over 150 ships stranded near the strategic Strait of Hormuz.
The Strait, a crucial conduit for a fifth of global oil and large amounts of gas, has seen shipping come to a standstill following Iran's retaliation against US and Israeli strikes. Affected tankers include those flying US, Marshall Islands, and Gibraltar flags, leading to insurance policy changes and potential cost increases in oil shipping.
Major insurers such as Gard and MS&AD Insurance Group have suspended war risk underwriting in the region, affecting oil shipping cost dynamics. Spot shipping rates are expected to surge further as instability deters shipowners, fueling uncertainty across global energy markets.
ALSO READ
-
Gulf's Banking Sector Shaken by IT Disruption Amid Rising Tensions
-
European natural gas futures spike 42.6 per cent in wake of shutdown of major Gulf liquid natural gas supplier, reports AP.
-
Navigating Turbulence: Shipping Struggles Amid Gulf Conflict
-
Aerial Assault on Stena Imperative: Tragedy at Middle East Gulf Shipyard
-
Escalation in the Gulf: The U.S.-Israeli Campaign Against Iran
Google News