Even if the Strait of Hormuz reopens to commercial vessels, shipping insurance premiums may surge to 20 times pre-war levels, according to industry analysts. The strategic waterway, through which about a fifth of the world's oil passes, has been disrupted by ongoing regional tensions, leaving shipping companies and insurers grappling with unprecedented risk assessments.
"The situation remains highly volatile," one analyst noted. "Insurers are pricing in worst-case scenarios, which could make transit prohibitively expensive even after formal operations resume."
The financial impact extends beyond insurance, with potential ripple effects on global oil prices and supply chains. Shipping firms are exploring alternative routes, though none match the efficiency of the Hormuz passage. The timeline for a full return to normalcy remains uncertain as diplomatic efforts continue.