Following US and Israeli strikes on Iran, underwriters in London have sharply raised insurance costs for ships transiting the Strait of Hormuz, with premiums up to 3–7% of vessel value versus under 0.5% pre-conflict. The US plans to offer $20bn in reinsurance via the International Development Finance Corporation for American insurers, potentially lowering costs for Navy-escorted ships to ~1% of value, creating competition with Lloyd’s longstanding war-risk market.

2026-03-19

Following US and Israeli strikes on Iran, underwriters in London have sharply raised insurance costs for ships transiting the Strait of Hormuz, with premiums up to 3–7% of vessel value versus under 0.5% pre-conflict. The US plans to offer $20bn in reinsurance via the International Development Finance Corporation for American insurers, potentially lowering costs for Navy-escorted ships to ~1% of value, creating competition with Lloyd’s longstanding war-risk market.