War-risk insurance for ships in the Strait of Hormuz jumps to around 5% of vessel value

War-risk insurance costs for ships transiting the Strait of Hormuz have surged as the US-Iran conflict escalates. According to insurance-industry reports in the days leading up to July 14, 2026, war-risk rates for vessels operating inside the Gulf have risen to roughly 3% of a vessel's value, up from about 2% late last week, while hull war-risk premiums for a Hormuz transit have climbed to around 5% of vessel value, emerging as the market's new norm.

The US Navy-led Joint Maritime Information Center (JMIC) raised its advisory for transiting Hormuz to the highest 'severe' level. War-risk cover is typically sold on a seven-day basis and repriced every 24 to 48 hours, so even small shifts at these levels add hundreds of thousands of dollars in daily costs for large tankers. Some insurers have advised owners to pause voyages, and ship traffic has declined.