On Monday, maritime insurance companies announced that they would be removing war risk coverage for vessels due to escalating tensions in Iran and the Gulf region. The companies, including Gard, Skuld, North Standard, the London Club of Shipowners, and the American Club, released notices on their websites stating that the cancellations would take effect starting March 5.
The notifications indicated that war risk coverage would be excluded in Iranian waters as well as in the Gulf and nearby areas.
In its announcement, Skuld mentioned that it is exploring options to reinstate coverage.
Meanwhile, the Japanese insurance group MS&AD informed Reuters that it has halted the issuance of various insurance policies covering war risks in waters near Iran, Israel, and surrounding countries.
Tensions in the Middle East have sharply increased following airstrikes by U.S. and Israeli forces on Iran earlier this week, prompting Tehran to declare that it has stopped navigation in the Strait of Hormuz, a critical waterway for global oil and gas shipments.
Following this announcement, multiple oil tanker owners, major oil companies, and trading firms suspended shipments of crude oil, fuel, and liquefied natural gas through this narrow passage. Satellite data indicated an accumulation of vessels near key ports in the UAE, such as Fujairah.
Tracking data on Sunday revealed increasing disruptions, with at least 150 vessels, including oil and LNG tankers, anchoring in open Gulf waters behind the Strait of Hormuz, along with many others positioned on the opposite side of the strait.
The situation has worsened after at least three tankers have sustained damage off the Gulf coast, resulting in the death of a crew member.