Archive · 17 Jun 2025
Marine Cargo Insurance Premiums Surge Amid Iran-Israel Tensions
Because of the conflict between Israel and Iran, the cost of insurance for goods shipped by sea has gone up.
This means that companies have to pay more to protect their cargo.
The Strait of Hormuz, where a lot of oil travels, is a dangerous place right now.
Insurance companies are charging extra fees, and this affects businesses that import and export goods, especially those in certain parts of India.
Rising tensions between Israel and Iran are increasing marine cargo insurance premiums.
Premiums have increased by 15-30% due to heightened war-related risks.
Insurers are adding 0.10% to 0.15% of cargo value for war risk coverage.
The Strait of Hormuz is a critical oil trade route, with about a fifth of global oil consumption passing through it.
The increased premiums impact importers and exporters, especially those in Gujarat and Maharashtra.
- Who
- Importers, exporters, insurance companies, and businesses involved in global trade.
- What
- Increased marine cargo insurance premiums due to escalating Israel-Iran tensions and war-related risks.
- When
- Ongoing, with increases reported in June 2025
- Where
- Global shipping routes, particularly impacting trade through the Strait of Hormuz and affecting Indian ports.
- Why
- Escalating tensions between Israel and Iran and the potential for conflict, increasing war-related risks in shipping.
Challenges to Global Trade
Risk Management
Cost vs Risk
Challenges to Global Trade
Rising insurance costs increase expenses and impact businesses
Risk Management
Increased premiums, though significant, are a necessary measure to manage risk.
- Premium Increase
- 15% to 30%
- Additional War Risk Charge
- 0.10% to 0.15% of cargo value
- Affected Region
- Red Sea, Strait of Hormuz
- Impacted Ports
- Gujarat and Maharashtra, India
- Key Players
- Marine Cargo Insurers
Sources
FMCG products to get costlier on rising crude prices
Oil shockwaves: How the Israel-Iran conflict could hit India hard
Oil is warming up, but India's inflation may escape the heat
Crude Oil Prices Jump After Trump’s Israel-Iran Remarks; HPCL, BPCL, IOC Shares Hold Steady
All About The Strait Of Hormuz: World's Most Important Oil Artery
