Maritime insurers cancel war risk cover in Gulf: Will it spike energy cost?

"Insurance companies are cancelling war risk coverage for vessels in the Middle East Gulf as the widening United States/Israel-Iran conflict disrupts shipping, leaving tankers damaged or stranded and at least two people dead. The conflict entered its fourth day on Tuesday with US and Israeli attacks continuing on Iran, which has retaliated by attacking US assets and other infrastructure in Gulf countries."

"A commander in Iran's Revolutionary Guard Corps (IRGC) said on Monday that the strait was closed and that any vessel attempting to pass through the waterway would be set ablaze. At least five tankers have been damaged, two personnel killed and about 150 ships stranded around the strait."

"The disruption and fears of prolonged closure have caused oil and European natural gas prices to jump, with Brent crude futures up as much as 13 percent as the conflict triggers multiple oil and gas shutdowns in the Middle East. About 10 percent of the world's container ships are ensnared in the broader backups."

The escalating US-Israel-Iran conflict has severely disrupted maritime shipping in the Middle East Gulf, with insurance companies cancelling war risk coverage for vessels in the region. Iran's Revolutionary Guard Corps claimed closure of the Strait of Hormuz, threatening to set ablaze any passing vessels. At least five tankers have been damaged, two people killed, and approximately 150 ships stranded. The disruption has caused Brent crude futures to surge 13 percent and European natural gas prices to jump significantly. About 10 percent of global container ships face delays, with cargo expected to accumulate at European and Asian ports. Major oil producers including Iraq, Saudi Arabia, and Qatar have tankers clustered in open waters, creating significant economic and logistical consequences.

Read at www.aljazeera.com