War Risk Insurance for Tankers in the Strait of Hormuz Reaches 10 Percent of Vessel Value

War risk insurance for a single transit of the Strait of Hormuz by a very large crude carrier (VLCC) has climbed to about 10 percent of the vessel's value during the peak of Iran-US military tensions, according to Ecoiran, citing Fararu, published Monday, 16 Shahrivar 1405 (September 7, 2026). Citing Lloyd's List, the report said war risk insurance for a single Hormuz transit by a five year old VLCC worth about 138 million dollars now runs 10 to 14 million dollars, versus a pre-war additional premium (AP) rate of roughly 0.15 to 0.25 percent of vessel value.

Marcus Baker, global head of marine and cargo insurance at Marsh, told CNN that war risk premiums hit about 10 percent of vessel value at the peak of the crisis, meaning roughly 10 million dollars for a single voyage on a 100 million dollar tanker, a figure that matches a report from specialist site AGBI that premiums rose from about 250,000 dollars before the war to about 10 million dollars at the peak of tension. Trade publications The National and Insurance Business also reported war risk premiums rising to a range of 3 to 10 percent of hull value. The steep costs have raised the economic risk of transiting the Strait of Hormuz for tanker owners and could affect shipping costs and final oil prices.