Insurance firms, tanker operators and global trading houses suspend shipments as Iranian forces broadcast warnings barring vessels from the strategic waterway.
By yourNEWS Media Newsroom
Iran’s Islamic Revolutionary Guard Corps announced Saturday that it had shut down maritime transit through the Strait of Hormuz, issuing radio warnings to vessels that passage through the corridor between the Persian Gulf and the Gulf of Oman was “not allowed,” according to regional maritime authorities and industry reports.
The United Kingdom Maritime Trade Operations Agency confirmed it received multiple alerts from ships operating in the area stating that IRGC forces were broadcasting warnings restricting transit through the strait, one of the world’s most critical oil shipping chokepoints.
Energy and shipping markets reacted quickly. Industry sources speaking to Reuters, as reported by Haaretz, said “several tanker owners, oil majors and trading houses had suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz.” One trading executive told Reuters, “Our ships will stay put for several days.”
Satellite tracking data cited by Reuters showed tankers clustering near key export terminals, including Fujairah in the United Arab Emirates, as operators avoided the narrow shipping lane. Vessel traffic patterns indicated hesitation among shipowners assessing security risks following the IRGC warning.
The Financial Times reported in coverage available here that marine insurance providers are preparing to cancel policies or sharply raise premiums for ships traveling through the Gulf and the Strait of Hormuz. Industry analysts quoted by the outlet said coverage costs could rise by as much as 50% in the coming days, with insurers already moving to withdraw war risk protections before markets reopen Monday. Rates for ships bound for Israel could experience similar increases.
The Financial Times further reported that “On Saturday at least three ships turned away from the strait, rather than pass through it, as shipowners assessed the risk of being attacked in the narrow waterway.”
Bloomberg News, citing vessel-tracking data in reporting available here, indicated that maritime movement had not ceased entirely. The outlet reported that “seven ships were seen exiting Hormuz while six were entering after the warnings had been issued.”
Bloomberg also reported that “Japanese giant Nippon Yusen KK earlier told its fleet not to navigate Hormuz, while Greece told its vast merchant fleet to reassess passage,” reflecting growing caution among major maritime operators.
The Strait of Hormuz serves as a principal transit route for crude oil, liquefied natural gas and refined fuel shipments from Gulf producers to global markets. Any sustained disruption to navigation through the corridor has the potential to affect energy supply chains and insurance markets worldwide.
As of Saturday evening, shipping companies, insurers and energy traders continued monitoring developments while evaluating operational and financial risks associated with attempting passage through the waterway.
