Marine Insurance Premiums Rise for Hormuz Transit

Additional premiums for ships transiting the Strait of Hormuz have seen a notable increase this week, following a series of attacks on commercial vessels and an announcement by US President Donald Trump declaring an "end" to a ceasefire agreement. Multiple sources in the marine insurance market, in a recent survey, indicated that these additional premiums for crossing the Strait currently range between one and five percent of the vessel's total value. One expert in the insurance sector pointed out that insurance rates for traversing the strategic waterway would be a minimum of 5%. Meanwhile, two other sources from the sector reported that rates had already risen to 5%. In a related context, a third source explained that rates would reach between 4% and 5%, with the possibility of granting a 50% no-claims discount if attacks persist, according to Reuters. One of these sources clarified that this increase comes after the previously agreed-upon additional premiums stood at approximately 2% before recent developments. Another source stated that prices last week fluctuated between 2.5% and 3% and remain within that range. Most observers and market experts attribute this rise, or its potential for further increase, to the collapse of the temporary ceasefire agreement between the United States and Iran.