Iran Conflict Disrupts Global Shipping as Tankers Are Damaged and Stranded
The escalating Iran conflict has caused significant disruptions to global shipping, with at least four tankers damaged and 150 ships stranded around the Strait of Hormuz.
According to Reuters, insurance companies have begun cancelling war risk coverage for vessels in the Gulf, effective from March 5. Marine insurers Gard, Skuld, NorthStandard, the London P&I Club, and the American Club have all issued notices cancelling their coverage, which will now be excluded in Iranian waters and adjacent areas.
The disruption has already had an impact on oil prices, with Brent crude futures increasing by over 7% due to concerns about prolonged closure of the strait. Spot shipping rates from the Middle East to Asia have also risen exponentially, nearly tripling since the start of 2026, as shipowners become increasingly cautious.
The incident involving the US-flagged products tanker Stena Imperative in Bahrain has added to the concerns, with projectiles hitting the vessel and causing a fire that was later extinguished. A projectile also hit the Marshall Islands-flagged product tanker MKD VYOM, killing a crew member as it sailed off the coast of Oman.