INSURANCE companies are cancelling war risk coverage for vessels in the Gulf as the widening Iran conflict disrupted shipping, leaving at least four tankers damaged, two seafarers killed and 150 ships stranded around the Strait of Hormuz.
Shipping through the strait between Iran and Oman, which carries around one-fifth of oil consumed globally as well as large quantities of gas, has ground to a near halt after vessels in the area were hit as Iran retaliated to US and Israeli strikes. The disruption and fears of prolonged closure have caused oil and European natural gas prices to jump, with Brent crude futures up more than 8 per cent as the conflict triggered multiple oil and gas shutdowns in the Middle East.
At least 150 vessels including oil and liquefied natural gas tankers had dropped anchor in the Strait of Hormuz and surrounding waters, shipping data showed on Sunday.
Iran has said it closed navigation through the critical waterway, prompting Asian governments and refiners – key buyers – to assess oil stockpiles.
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