Ship-Owners Retreat As Hormuz War-Risk Insurance Demand Falls

By Staff, Agencies

Demand for marine war-risk insurance for Strait of Hormuz voyages has fallen as ship-owners reconsider transit plans amid renewed US aggression against Iran, Bloomberg reported, citing industry sources.

Accordingly, marine insurance brokers and underwriters in London told Bloomberg that inquiries for war-risk coverage have fallen since the collapse of the West Asia ceasefire earlier this week, suggesting growing caution among vessel owners despite the absence of definitive data.

Meanwhile, visible shipping traffic through the Strait of Hormuz had nearly ground to a halt by Thursday, with only limited vessel movements observed. Some ship-owners that recently completed the passage have reportedly begun reconsidering return voyages, while others have abandoned plans to transit the strait altogether.

However, the actual scale of shipping activity remains difficult to assess because some vessels have continued sailing through the waterway with their transponders switched off, a practice that predates the temporary truce between Washington and Tehran.

Despite the slowdown, war-risk insurance premiums for Hormuz transits remain elevated despite fewer inquiries, with rates reaching 2–6% of a vessel’s value, though discounts often reduce actual costs.

The uncertainty follows US attacks on Iranian targets, after which Tehran retaliated against US military sites in Bahrain and Kuwait, fueling fears of renewed confrontation and further disruption along the strategic waterway.