Maritime Insurance Fees for Hormuz Transit Hit Record High Amid Conflict

Maritime insurance premiums for vessels transiting the Strait of Hormuz have escalated to 10% of the ship's value, the highest level recorded during the ongoing conflict, following attacks on commercial ships earlier this week, according to sources in the shipping insurance market serving "The Insurer" by Reuters, which specializes in insurance coverage.

The Iranian Revolutionary Guard stated that two oil tankers "exploded" and became disabled after attempting to pass through the strait via an "unsafe route."

Four ships affected in one day as navigation through the Strait of Hormuz declines noticeably

On Sunday, the Revolutionary Guard reported that two vessels experienced what it described as an "incident" in the same area. It remains unclear whether the two events are connected.

The UK Maritime Trade Operations reported that a ship was targeted by an unidentified projectile off the coast of Oman near the Strait of Hormuz.

On Monday, one insurance source indicated that war risk premiums for passing through the Strait of Hormuz had risen to between 8% and 10%, while two other insurance sector sources confirmed the fees reached 10%.

An insurance brokerage source agreed with reports that premiums hit 10%, including a no-claims bonus, whereas another sector source estimated the rate at approximately 7.5%.

The first source noted that the 10% premium is the highest the region has seen during the conflict to date.

The second insurance source added that shipowners are "hesitant" to accept paying such a high fee for transit.

UK's new Prime Minister reassures Trump on security support for Hormuz

Prior to the collapse of the temporary ceasefire between Iran and the United States and the subsequent resumption of attacks on commercial vessels, maritime war risk insurance premiums for crossing the Strait of Hormuz ranged from one to three percent of the ship's value.

The premium increase coincided with some insurers suspending quotes for transit, while others advised shipping companies to suspend voyages through the Strait of Hormuz.

Today, the Iran-aligned Yemeni Houthi militia announced an immediate ban on maritime navigation toward Saudi Arabia.

In a statement, the Yemeni Armed Forces declared a maritime navigation ban on the "criminal Saudi enemy" under the equation "blockade for blockade," effective immediately upon the announcement.

An insurance sector source said the market will have to wait to understand the practical implications of this ban, noting that in recent months the Houthis have frequently issued threats without taking action.

Another insurance source reported that insurance costs in the Red Sea have risen from 0.3% to 0.75% following the Houthi announcement.