Middle East conflict: Marine insurance rates surge by 60%

Amid ongoing conflict in the Middle East, insurers have raised hull and machinery insurance premiums by 60% for vessels transiting the Strait of Hormuz.

This hike has pushed typical rates from 0.125% of a ship’s value up to 0.2% within just a few days.

For a vessel valued at 100 million USD, the rate for an insurance policy has jumped from 125 000 USD to 200 000 USD.

War risk insurance premiums have also soared in the Red Sea.

This surge reflects the marine market's concern that a wider regional escalation could disrupt already fragile shipping routes in the Gulf region.