Reuters reported on 2 March 2026 that marine insurers are cancelling war-risk cover for ships operating in Iranian waters and the Gulf after the widening Iran conflict damaged at least three tankers, killed a seafarer, and left about 150 vessels anchored around the Strait of Hormuz.
According to Reuters, clubs including Gard, Skuld, NorthStandard, the London P&I Club, and the American Club said the cancellations would take effect from 5 March 2026, based on notices dated 1 March 2026. Skuld said it was “working on a buy-back option” to reinstate cover, while Japan’s MS&AD Insurance Group told Reuters it had suspended underwriting of some war-risk policies for waters around Iran, Israel and nearby countries.
On the freight side, Reuters said tanker costs are expected to rise further as owners avoid the region. Brokers cited by Reuters pegged the VLCC spot rate on the Middle East–China route at around W225 on 2 March 2026, about 4% above the prior Friday and equivalent to at least $12 million, while the Middle East-to-Asia benchmark TD3C has nearly tripled since the start of 2026.
Notes: Source: Reuters
