Marine insurers cancel war risk coverage in Iranian waters, Gulf
Major marine insurers including Gard, Skuld, NorthStandard, London P&I Club, and American Club have withdrawn war risk coverage for vessels operating in Iranian waters, the Gulf, and adjacent waterways. The move follows recent attacks on vessels and regional strikes that escalated security risks in one of the world's most strategic energy corridors. War risk cover cancellations take effect March 5, 2026, according to notices dated March 1. This will increase operational and financial risks for shipowners, potentially driving oil shipping rates higher. Tankers have clustered off Iraq, Saudi Arabia, and Qatar due to navigation restrictions in the Strait of Hormuz, which carries one-fifth of global oil. Brent crude futures surged over 7% amid fears of prolonged closures. Japan's MS&AD Insurance Group also suspended war risk coverage in waters around Iran and Israel. The situation remains fluid with ongoing strikes and counterstrikes affecting energy supply security and global oil market stability.