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Iran strikes tankers near Hormuz, boosting marine war-risk premiums
War-risk premiums for a Hormuz transit had eased from a crisis peak to about 3.0% to 8.0% of a vessel's hull value, but the new attacks are reviving the pricing spread amid ongoing US defense and reinsurance efforts.
Iran struck two oil tankers in the Strait of Hormuz, according to Iran's Revolutionary Guard, as the vessels attempted to transit under United States naval escort, with other ships reportedly changing course to avoid a similar fate, the Insurance Business reported. Neither American nor British maritime security monitors had independently confirmed the strikes as of the morning, and US Central Command disputed claims that Iran controls the waterway.
Even without independent confirmation, oil markets treated the reports as credible, with Brent rising toward $89.9 a barrel and West Texas Intermediate nearing $84.4, extending a rally. The news arrives as the marine war-risk insurance market sits at a fragile point, after premiums had begun to soften following earlier turmoil.
According to Dylan Saunders-Mortimer at Marsh UK, war-risk premiums for a Hormuz transit had eased from a crisis peak of roughly 10.0% of a vessel's hull value to a range of about 3.0% to 8.0%. That remains far above the prewar baseline of roughly 0.25% at the start of the conflict on Feb. 28, while other broker estimates from the same period put the additional premium as high as 7.5% to 10.0%, showing how quickly conditions are shifting.
The report also cites a June memorandum of understanding between Washington and Tehran that had briefly cooled the market, before this week's attacks reversed that trend. It adds that after premiums spiked in late February, President Trump directed the US International Development Finance Corporation to establish a maritime reinsurance facility to keep American-linked shipping moving, launched at $20.0 billion in March and expanded to $40.0 billion within weeks, with Chubb named as lead underwriter alongside AIG, Berkshire Hathaway, Travelers, Liberty Mutual, and Starr. The facility had written no policies as of May, the article said.
Latest closeBrent $90.12 ▲1.2%