War risk insurance for ships passing through the Strait of Hormuz have surged dramatically since the start of the Iran War. Marco Forgione, the director of the UK-based Chartered Institute of Export and International Trade, noted that while coverage was briefly withdrawn, premiums have risen by 200% to 300%, which is unsustainable to maintain long-term. Before the crisis, war-risk insurance for a vessel passing through the Gulf would be at 0.02% to 0.05% of the vessel's value. Since the start of hostilities, premiums have reportedly jumped to 0.5% to 1% of the vessel's value, or even more. It means that for a tanker valued at $120mn a normal premium of approximately $40,000 would now cost between $600,000 and $1.2mn for a single trip. Hormuz becomes world's most expensive waterway after 300% surge in risk premiums
