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Hormuz war-risk premiums face renewed strain after Iran-US clashes
Hull war-risk rates that had retreated after a June ceasefire have again jumped to as high as 10% of vessel value, raising the potential cost of a single tanker transit.
Iran and US forces resumed strikes and attacks in the Middle East, pushing the Strait of Hormuz back into active conflict conditions, which is intensifying scrutiny for marine insurance brokers arranging war-risk cover, according to Insurance Business. The exchange has renewed concerns over energy shipping, a key corridor that the International Energy Agency estimates accounts for about 25% of global seaborne oil trade and roughly 20% of global LNG trade.
Before hostilities restarted, hull war-risk rates for Hormuz transits were around 0.15% to 0.25% of vessel value. After initial US and Israeli strikes, premiums surged to between 3% and 10%, a level Insurance Business notes can translate into a roughly $15 million insurance bill for a single $150 million tanker at a 10% rate.
Insurance Business said the brief June ceasefire led to premiums beginning to retreat from their peaks, though the Lloyd's Market Association described a later uptick after three vessels were attacked in the first week of July. The outlet also cited a March 2026 Howden Re report estimating the conflict could generate $2 billion to $3 billion in war, terror, and political violence claims, exceeding the segment's estimated annual global premium volume of $1.5 billion to $2 billion.
Separately, the US Treasury's Office of Foreign Assets Control issued an August 24 alert on sanctions risks tied to Hormuz passage payments, naming multiple designated entities. Insurance Business added that the LMA has produced model clause wording that can allow insurers to cancel coverage if a Hormuz toll payment comes to light, increasing compliance complexity for brokers arranging tanker cover.