The Cradle
Global marine insurance providers have completely withdrawn coverage for commercial vessels navigating the Strait of Hormuz amid mounting military escalations and maritime restrictions, according to industry executives.
Oscar Seikaly, CEO of the US-based insurance brokerage NSI Insurance Group, told Al Jazeera that “none of the insurers we work with are willing to take any risks at this time” to cover passage through the vital waterway.
“No one is willing to take on any risk right now, especially with the current standstill,” Seikaly stated, adding that maritime coverage remains entirely unavailable until regional conditions stabilize.
The suspension of insurance follows repeated warnings from Iranian authorities that vessels utilizing unauthorized shipping lanes or navigating the strait without Iranian authorization face severe security risks.
Tehran has maintained that at least a dozen commercial ships have been struck over the preceding two weeks for traversing what it deems illegal routes, while the IRGC Navy has enforced strict transit controls across the Persian Gulf.
