War Insurers Advise Shipping Companies To Avoid Strait Of Hormuz After Latest Attacks

War insurers have advised shipping companies to stop Hormuz sailings while others are reviewing their policy terms after renewed vessel attacks in the critical waterway.

Three commercial tankers were attacked in the Strait of Hormuz after which the U.S launched attacks on more than 80 key sites in Iran, and more recently on the Chabahar Port.

Iran also attacked U.S military sites in Bahrain and Kuwait.

The U.S has deployed over 20 warships in West Asia and President Trump has threatened more attacks on the Islamic Republic.

Meanwhile, Trump also said that the U.S forces in the region could reimpose the naval blockade on Iranian Ports.

Trump also said that the deal with Iran is ‘over’ and blamed the country for violating the ceasefire by attacking three commercial ships in Hormuz.

Iran, on the other hand, blamed the U.S for destabilising the region due to its massive military presence and reasserted its right to control and manage the Strait of Homuz.

The ships that were attacked had taken the route close to the coast of Oman and not the one authorised by Iran’s IRGC for commercial vessels wanting to cross the waterway.

These developments led to a 5% rise in oil prices globally and also soaring war risk insurance which is now 3% of the value of the ship, from 2% at the end of last week.

The one percent increase translates to an extra thousands of dollars per day for owners and operators.

The U.N.’s International Maritime Organization (IMO) said that sailings through Hormuz should be avoided “as long as the safety and security of crews cannot be assured.”

IMO Secretary-General Arsenio Dominguez said high ship insurance is “compounding the strain on shipowners and operators.”