Iran Mandates Hormuz Vessel Permits and Insurance as VLCC War-Risk Costs Jump to $7.5 Million
Updated
Updated · OilPrice.com · Jun 22
Iran Mandates Hormuz Vessel Permits and Insurance as VLCC War-Risk Costs Jump to $7.5 Million
3 articles · Updated · OilPrice.com · Jun 22
Summary
Iran has made permits and insurance compulsory for ships using the Strait of Hormuz, with the new Persian Gulf Strait Authority set to issue transit approvals, route vessels and initially provide coverage for free.
The move adds another layer of control to a chokepoint already disrupted by the U.S.-Israel war with Iran, sanctions risk and GNSS spoofing that can obscure vessel positions and break insurers’ and banks’ ability to verify voyages.
War-risk premiums for a Very Large Crude Carrier have already surged from about $150,000-$225,000 per voyage before the conflict to $5 million-$7.5 million after it began, raising physical oil shipping costs out of the Gulf.
Kpler argues the real threat is not a simple open-or-closed strait but persistent information gaps over who is sailing, when and under what risk profile, a problem likely to outlast this week’s peace talks.
As Iran uses crypto to bypass sanctions, is a new era of financial warfare beginning?
With vessel tracking spoofed and maritime law defied, is the global shipping system breaking down?
Iran’s Strait of Hormuz Fee: 150–200% Surge in Shipping Costs, Global Oil Market Disrupted
Overview
Iran has asserted new control over the Strait of Hormuz by introducing a regulatory framework that requires ships to use a 5-nautical-mile corridor and, after a 60-day free period, pay an insurance fee for passage. This move follows earlier threats to close the Strait and comes after a June 17, 2026 agreement between President Trump and Iranian President Pezeshkian, which led to the reopening of the Strait and the lifting of a U.S. blockade. These changes have already caused immediate economic impacts, including higher shipping costs and increased geopolitical tensions, as global trade adapts to Iran’s new rules.