Geopolitical Strain Pushes Gulf Shipping Insurance to Historic Highs

New Delhi – The intensifying U.S.–Iran confrontation has triggered a sharp upward swing in war‑risk insurance for vessels navigating the Gulf of Oman and nearby sea lanes. According to Equiris Regnal Insurance Brokerage, insurers have lifted premiums on the most vulnerable routes by 200‑300 % in recent months, with a few policies reflecting increases of more than 1,000 %.

Historically, carriers paid between 0.2‑0.5 % of the ship’s value for such coverage; today the charge sits between 3‑5 % of the vessel’s valuation, dramatically inflating the cost of maritime transport.

The ripple effect is expected to hit India’s crude oil import bill, as higher insurance outlays augment the total landed cost of Middle‑East oil. While insurance is only one component of logistics spend, its rapid escalation could materially affect the economics of the nation’s fuel supply chain.

Director Amit Goyal notes that insurers will reassess risk exposure, tighten underwriting standards and may even reduce the pool of available policies. The Indian marine insurance market, valued at roughly ₹5,500‑₹5,800 crore, could see prolonged premium pressure.

Goyal forecasts that premium levels will stay elevated as long as regional hostilities continue, though a sustained reduction in tension could eventually soften the price trajectory.