Insurers require ships to use Iranian-approved route for Strait of Hormuz war-risk cover
Updated
Updated · The Wall Street Journal · Apr 27
Insurers require ships to use Iranian-approved route for Strait of Hormuz war-risk cover
16 articles · Updated · The Wall Street Journal · Apr 27
Some insurers now mandate vessels follow an Iranian-approved path as a condition for war-risk insurance, with rates at 3% to 8% of ship value.
This requirement reflects ongoing uncertainty and risk in the Strait of Hormuz, which remains effectively blocked, complicating proof of Iranian approval due to sanctions.
War-risk insurance rates, though down from a 10% high before the cease-fire, remain far above the typical 0.25% peacetime level, highlighting persistent maritime security concerns.
Is Iran's 'tollbooth' in the Strait of Hormuz the new model for trade in conflict zones?
Is the insurers' 'financial blockade' now more powerful than the naval blockade in halting trade?
Could a cyberattack on ship navigation be the next flashpoint in the Hormuz conflict?
How are global supply chains coping with the simultaneous blockade of Hormuz and the Red Sea?
With 20,000 seafarers trapped, who is accountable for the growing humanitarian crisis in the Gulf?
Beyond military threats, what diplomatic solution can reopen the world's most vital oil chokepoint?