Maritime insurers cancel Gulf war cover as Iran conflict disrupts shipping
Mar 3rd 2026
Leading marine insurers have withdrawn war risk cover for Gulf waters after strikes on Iran, leaving hundreds of ships anchored, prompting major route diversions and sharp freight cost increases.
- Major mutual marine insurers including Gard, Skuld, NorthStandard, London P&I Club and the American Club are cancelling non-poolable war risk cover for Iranian, Gulf and adjacent waters from March 5.
- At least 150 vessels are anchored in and around the Strait of Hormuz and at least three tankers were damaged, with one seafarer killed over the weekend.
- The Strait of Hormuz transits roughly 20% of global oil flows and 20% of seaborne gas tanker traffic and is effectively closed after US and Israeli strikes on Iran.
- Brokers warn war risk premiums could rise 50% to 100% or more, with some cover moving from about 0.25% toward 0.5% to 1% of vessel value for higher-risk exposures.
- Container and freight rates have spiked, with the Containerized Freight Index up 6.5% and Shanghai to Jebel Ali 40ft container rates jumping from about $1,800 to $3,700.
- Major carriers including Maersk, Hapag-Lloyd and CMA CGM have diverted Red Sea sailings around Africa and CMA CGM has added a $2,000 to $4,000 emergency conflict surcharge per container.
- Rerouting, suspended port operations and insurer cancellations are removing capacity and could push global freight and energy prices higher if disruptions continue.