Insurance Costs Rise Fivefold for Vessels Sailing Through Strait of Hormuz Amid Security Concerns

Insurance costs for vessels sailing through the Strait of Hormuz have increased fivefold since the early days of the Iran conflict, reflecting heightened safety risks. Despite higher rates, coverage remains available, particularly for ships linked to China, India, and Pakistan. The US has launched a $20 billion reinsurance program to support shipping, though efforts to secure the waterway face reluctance from allies. Since March 1, at least 20 ships have encountered security incidents in the region, including a recent container ship fire.