Major insurers CANCEL coverage for vessels crossing Strait of Hormuz, sparking global shipping crisis
Major insurers including Gard and London P&I Club canceled war risk coverage for vessels in the Strait of Hormuz following Iranian retaliatory strikes, effective March 5. This threatens to halt 20% of global oil trade and trigger an energy price crisis.
The Iranian Revolutionary Guard Corps declared the strait “closed” and attacked vessels like the U.S.-flagged Stena Imperative, driving war risk premiums from 0.2% to 1% of a ship’s value – adding up to $1 million per voyage.
Brent crude surged 13%, European gas prices jumped nearly 50% and Asian LNG prices spiked 39% as 40 supertankers remained stranded. JPMorgan warns a 25-day closure could cause catastrophic supply bottlenecks.
Shipping rates from the Middle East to Asia tripled, and rerouted tankers strain supply chains. Europe faces potential winter fuel shortages, while insurers predict 300% premium hikes, making oil shipments prohibitively expensive.
With no ceasefires or naval escorts in sight, the strait’s closure threatens industrialized economies, proving that insurance disruptions can be as destabilizing as military conflict. Alternative energy sources and non-BRICS oil imports may offer limited relief.
Read Full Article: https://www.naturalnews.com/2026-03-05-insurers-cancel-coverage-vessels-crossing-hormuz-strait.html
