Lloyd’s Brokers Negotiate Costlier Hormuz War Cover for 1,500 Stranded Ships
Updated
Updated · The New York Times · May 29
Lloyd’s Brokers Negotiate Costlier Hormuz War Cover for 1,500 Stranded Ships
4 articles · Updated · The New York Times · May 29
About 1,500 ships have been stranded in the Persian Gulf for three months, and brokers at Lloyd’s of London are negotiating war-risk cover needed to move cargo once the Strait of Hormuz reopens.
Premiums are expected to remain elevated even after any U.S.-Iran agreement because insurers now see the route as vulnerable to sudden disruption, marine insurance executives and analysts said.
The strait handled roughly one-fifth of global oil and gas exports before the war, making insurance pricing there a key condition for restarting trade flows.
That means any reopening deal may not quickly restore prewar shipping economics, as higher insurance costs could linger well beyond the immediate conflict.
With 20,000 seafarers stranded, what is the hidden human price of securing our global supply chains?
Beyond oil, how does the Hormuz crisis threaten the global green energy transition and tech industries?
Is the insurance market's reaction creating a financial blockade more powerful than any military force?
Strait of Hormuz Shutdown: How the 2026 Iran War Paralyzed 20% of Global Trade and Reshaped Shipping Forever
Overview
In May 2026, the global shipping industry is facing a severe crisis as critical chokepoints like the Strait of Hormuz and the Persian Gulf have become extremely dangerous and disrupted. This situation escalated after Operation Epic Fury began at the end of February, causing a surge in maritime security incidents and creating a volatile environment for international shipping. The threat from drones and sea mines has made transit through these areas very risky, as shown by incidents like the attack on a Thai cargo ship near Oman. As a result, shipping in these vital waterways has become a high-risk endeavor.