The price of insurance for ships passing through the Strait of Hormuz has increased 12 times

The cost of insurance for ships passing through the Strait of Hormuz has increased 12 times due to military risks in the region.

This is reported by Interfax-Ukraine.

According to brokers, the rate for insurance for ships operating in high-risk areas (which include not only the Strait of Hormuz itself, but also the waters adjacent to it) is now 3% of the value of the ship. Before the start of the US and Israeli military operation against Iran, it was 0.25%.

Earlier, the head of the White House told Truth Social that he had ordered the US Development Finance Corporation (DFC) to begin providing insurance and guarantees on favorable terms “for all commercial maritime traffic” passing through the Persian Gulf, especially those related to energy resources.

David Smith of the brokerage firm McGill commented that insurers do not know how widely the announced support will be distributed. Other experts question how effective the DFC, whose primary role is to promote private investment in poor countries, can be. Meanwhile, for shipowners operating in the Persian Gulf, the main problem is precisely the threat of attack.

USM previously reported that the US Navy may begin escorting tankers through the Strait of Hormuz.