The cost of insuring ships passing through the Strait of Hormuz has more than halved in the past six days as the truce between the US and Iran continues, the Financial Times reported.
War risk insurance premiums for ships have been cut from around 5% to 2% of the ship’s price, taking into account discounts. For large tankers, this means hundreds of thousands of dollars in cost savings.
The tariffs began to fall after Washington and Tehran signed a memorandum of understanding last week, providing for an immediate cessation of hostilities on all fronts. Insurance costs have risen sharply in recent months due to the threat of attacks on shipping in the Strait of Hormuz, reaching millions of dollars a week for some of the largest tankers.
Meanwhile, insurers and shipowners remain cautious. The cost of cargo insurance against war risks remains virtually unchanged, and the possible presence of naval mines continues to be reported in certain areas of the Strait of Hormuz routes.