Hormuz War-Risk Insurance Rates Climb Again After Fresh Attacks on Vessels

War-risk insurance rates for vessels transiting the Strait of Hormuz have climbed again following renewed military escalation, according to the Lloyd's Market Association. Neil Roberts, the association's head of marine and aviation, said rates had softened after a memorandum of understanding between the United States and Iran was signed in June, but ticked up after three commercial vessels were attacked this week. Market estimates put hull war-risk premiums at roughly 5% of a vessel's value for Hormuz voyages, now emerging as the market norm. Premiums had fallen to about 2% after the memorandum and briefly spiked as high as 10% earlier in the conflict, against pre-crisis levels that were a small fraction of a percentage point. For a large crude carrier valued at over $100 million, the difference translates into millions of dollars per transit. The International Maritime Organization advised ships to avoid the strait until crew safety can be assured, with its secretary-general saying the high cost of cover is compounding strain on shipowners and urging governments to engage with insurers so premiums reflect current rather than peak-crisis conditions. Some war underwriters have advised clients to pause voyages while others review policy terms. Roberts said pricing would remain highly variable given continuing volatility.