War-risk insurance premiums for ships transiting the Strait of Hormuz have surged by more than 1,000%. The situation in one of the world’s most critical maritime chokepoints has become exactly that.
Allianz SE, Europe’s largest insurer, is sounding the alarm that the insurance industry is staring down a wave of major claims tied to vessel damage from the ongoing Iran conflict. At least nine tankers have already been hit, multiple insurers have canceled or repriced war-risk coverage entirely, and the financial ripple effects are spreading well beyond the Persian Gulf.
The damage so far
The conflict escalated sharply after US and Israeli forces launched strikes on Iranian sites on February 28, 2026, prompting retaliatory attacks from Tehran. Since then, the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil passes, has become a live combat zone for commercial shipping.
At least nine tankers have been reported damaged in the conflict zone. Among them is the Honduran-flagged Nova, struck by drone attacks.
