PNN – Euronews reports that the US-Israeli war against Iran has made the Strait of Hormuz the world’s most expensive waterway for shipping, as the crisis has led to a sharp increase in insurance premiums related to the risks of conflict.
According to the report of Pakistan News Network, before the US-Israeli war against Iran, approximately 20 percent of the world’s seaborne crude oil passed through the Strait of Hormuz. However, since the start of the conflict, maritime traffic has virtually stopped.
Before the crisis, the war risk premium for an oil tanker in the Persian Gulf was 0.02 to 0.05 percent of its value. Since late February, the premium has risen to 0.5 to 1 percent or even more, Euronews reports.
The media outlet reported on Monday that war risk insurance premiums for a single voyage have risen from around $40,000 to $600,000 to $1.2 million for a typical tanker. Euronews noted that at least 16 ships have been hit since the conflict began.
The report added that consumers will feel the side effects of this price increase within a few weeks at the gas station or supermarket.
The US has pledged to escort ships through the Strait of Hormuz, and Donald Trump has called on countries that buy oil to help secure the strategic waterway.
However, even with naval escorts, companies will still consider the waterway a high-risk operating environment, Christopher Long, who works for a maritime security firm called Neptune P2P Group, told Euronews.
US Energy Secretary Chris Wright said in an interview with CNBC on Thursday that the US Navy is not prepared to escort oil tankers through the Strait of Hormuz.
The spokesman for the Khatam Central Headquarters has announced that Iran will not allow even a single liter of oil to pass through the Strait of Hormuz for the benefit of the United States and its allies, and has warned that the price of oil could almost double to $200 per barrel.
He added on Wednesday: The armed forces of the Islamic Republic of Iran, due to their holding of the initiative in the Strait of Hormuz, do not need to close this vital waterway. Of course, we will never allow even a liter of oil to pass through the Strait of Hormuz for the benefit of America, the Zionists, and their partners.
“You should know that you will not be able to lower the price of oil and energy with artificial respiration, because as the war spreads in the region, we have announced that you should expect a price of $200 per barrel.”
The spokesman for the Khatam Al-Anbiya Central Headquarters announced: Any vessel carrying oil cargo is a legitimate target for Iran for the United States and Israel.