Israel and Iran’s escalating conflict has significantly driven up the cost of insurance for ships sailing through the Red Sea and Persian Gulf.
Marine insurers are now charging 0.2% of the value of a ship for journeys into the Gulf, according to data from the world’s largest insurance broker Marsh McLennan, up from 0.125% prior to Israel’s surprise attack on Iran last week.
There has also been an uptick in war risk insurance rates for the Red Sea, Marsh said, while cover relating to ports in Israel has more than tripled to 0.7%.
The length of time quotes are valid for has been cut to 24 hours from most leaders, Marsh said, down from 48 hours previously.
The scramble to reassess shipping insurance costs reflects the deteriorating security environment in the Middle East, with Israel and Iran continuing to exchange fresh air attacks over recent days.
