Hormuz Strait War Risk Premium Rises to 10%, Highest Since Current Conflict Began

Multiple shipping market sources reported that war risk insurance premiums for vessels transiting the Strait of Hormuz have surged to 10% of vessel value following continued attacks on merchant ships over the weekend—marking the highest level since the current conflict began.

One underwriting source said on Monday (20th) that war risk premiums for Hormuz Strait passage had risen to 8%–10%, while two other underwriting sources confirmed the rate had reached 10%.

Underwriting sources indicated that shipowners are hesitant to pay such high transit premiums.

One brokerage source confirmed the rate had reached 10%, plus no-claim bonus, calling the 10% level the highest since the current conflict erupted. Another brokerage source stated the rate was around 7.5%.