War-risk insurance for Hormuz tankers climbs to about 5% of vessel value, the new market norm after this week's attacks

According to marine-insurance market reports, hull war-risk premiums for vessels transiting the Strait of Hormuz have risen in recent days to about 5% of a ship's value, becoming the new market norm. The rate climbed after attacks on three commercial vessels this week, reversing expectations of improving conditions.

War-risk premiums had eased to around 2% following the US-Iran memorandum signed in June, but had earlier spiked as high as about 10% at the peak of the conflict. The reports say premiums for ships operating around the Persian Gulf have surged by as much as 1,000% over the past three months, turning insurance from a routine operating cost into one of the heaviest expenses in global trade. These costs bear directly on the region's oil-export economy, including Iran's.