Maritime insurance premiums have surged globally due to escalating tensions between the US and Iran, particularly following recent attacks on oil tankers in the Gulf of Oman. Insurers are raising rates to offset risks from potential disruptions in critical shipping lanes like the Strait of Hormuz, which handles 20% of global oil exports. Premiums for commercial vessels operating in the region have increased by up to 300% in some cases, with additional security measures and war risk premiums now standard. This development poses significant challenges for global trade, as shipping costs may rise sharply, impacting energy prices and inflation. Traders and investors should monitor how geopolitical risks affect oil markets, with Brent crude already showing volatility. The situation also raises concerns about supply chain disruptions, particularly for Gulf-based energy exporters reliant on stable maritime routes. For MENA investors, the conflict's escalation could strain regional economies dependent on oil exports and shipping. Key indicators to watch include OPEC policy responses, insurance sector resilience, and potential sanctions on Iranian oil. The Strait of Hormuz's security remains a critical overhang for global energy markets.

Read full article from source ↗