The global insurance industry is bracing for potentially billions of dollars in claims as the Iran conflict disrupts shipping in the Persian Gulf and creates one of the most severe marine insurance crises in decades. With nine vessels already attacked since hostilities began and Iran’s Revolutionary Guard threatening further strikes, war risk premiums for Gulf voyages have reportedly soared to extraordinary levels — and the claims that follow attacks are adding up rapidly.
Lloyd’s of London and the broader marine insurance market are at the center of the crisis. War risk insurance for vessels attempting to navigate the Strait of Hormuz has become either prohibitively expensive or simply unavailable at standard market rates. Operators seeking cover for Gulf voyages are being quoted premiums that can add millions of dollars to the cost of a single voyage, fundamentally altering the economics of Gulf energy trade.
The nine attacks documented since the conflict began represent a significant claims event in themselves. Oil tankers and LNG carriers are extraordinarily valuable assets — a large crude oil tanker can be worth hundreds of millions of dollars, and its cargo can be worth even more. The physical damage from the attacks, the cargo losses, and the business interruption claims from stranded vessels combine to create a claims exposure that the market is still in the process of quantifying.
The broader implications for the insurance market extend beyond the immediate claims. The prolonged closure of the Strait of Hormuz to commercial traffic has left around 600 vessels stranded in the Gulf, creating an enormous and growing exposure to business interruption, detention, and cargo delay claims. The industry is also grappling with the challenge of pricing war risk coverage for an uncertain and rapidly evolving military situation.
Financial markets have registered the insurance industry’s exposure as part of a broader financial crisis. Stock markets have fallen sharply across Asia, Europe, and the UK. Bond yields have surged. Airlines — facing both higher fuel costs and the prospect of reduced demand from a conflict-affected region — have warned of massive losses. The insurance industry’s mounting Gulf claims are part of a much larger economic shock whose full dimensions are still being measured.