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flag Marine insurers canceled war risk coverage in key Middle East waters due to heightened tensions, raising shipping costs and forcing route diversions.

flag Marine insurers Skuld and NorthStandard have canceled war risk coverage for the Persian Gulf, Gulf of Oman, and surrounding waters effective March 5, 2026, citing escalating tensions after U.S. and Israeli strikes on Iran and Tehran’s retaliation. flag The move, driven by reinsurers reducing exposure, leaves vessels transiting the Strait of Hormuz uninsurable or facing premiums doubling to 0.5% or more of a ship’s value—up to $750,000 for large vessels. flag Some ships linked to the U.S. or Israel may be uninsurable at any price. flag Freight rates to the UAE have surged, carriers are diverting around Africa, and global container capacity is shrinking, risking prolonged disruptions and higher shipping costs.

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