Strait of Hormuz is effectively closed and vessels rerouted, sending some freight costs surging
Leading maritime insurers have cancelled war risk cover for vessels operating in the Gulf as the escalating Iran conflict disrupted shipping and sent some freight costs surging.
At least 150 vessels including oil and liquefied natural gas tankers have dropped anchor in the strait of Hormuz and surrounding waters.
The vital shipping route, through which about 20% of the world’s oil supplies and 20% of seaborne gas tankers pass, is effectively closed after the US and Israel began intense airstrikes on Iran on Saturday.
Several leading marine insurers, including Norway’s Gard and Skuld, the UK’s North Standard and the London P&I Club, and the New York-based American Club, said they were cancelling war risk cover for ships operating in the region.
