Lloyd's of London Maintains Hormuz Tanker Cover as War-Risk Premiums Surge Twelvefold

Key Facts

Lloyd's of London has confirmed that the insurance market remains open for tankers transiting the Strait of Hormuz, despite escalating security risks in the region. While coverage is still available, war-risk insurance premiums for commercial vessels have surged twelvefold due to persistent military threats from drones and missiles. Industry officials noted that any slowdown in maritime traffic is primarily driven by physical safety concerns rather than a lack of insurance capacity. To mitigate these risks, the United States is reportedly considering a $20 billion reinsurance backstop facility to secure oil commerce and maritime trade. The combination of soaring insurance costs and geopolitical tensions continues to exert upward pressure on global oil benchmarks and shipping sector volatility.