Maritime insurance premiums are soaring as conflict rages in the Middle East.
Prices are up more than 1,000 per cent in some cases – dramatically raising the cost of moving oil and gas as well as other goods and produce.
The conflagration sparked by air strikes on Iran ordered by US President Donald Trump in tandem with Israel has paralysed traffic in the Strait of Hormuz, a major shipping channel that carries a fifth of the world’s oil supplies.
Tehran has vowed to fire on any ship trying to pass through, and at least nine vessels have so far suffered damage.
Anchored: Tehran has vowed to fire on any ship trying to pass through the Strait of Hormuz, and at least nine vessels have so far suffered damage
War risk insurance allows ship owners to claim against damage to vessels or cargo resulting from conflict or terrorism.
The price spike underscores how the war is raising costs for ship owners, traders and energy firms moving cargo through the Strait, fuelling fears the conflict could stoke inflation.
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