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

Due to rising tensions following Israeli and American strikes on Iran and Tehran's retaliation, marine insurers Skuld and NorthStandard have canceled war risk coverage for the Persian Gulf, Gulf of Oman, and surrounding waters as of March 5, 2026. Vessels passing through the Strait of Hormuz are either uninsurable or face premiums that double to 0.5% or more of a ship's value—up to $750,000 for large vessels—as a result of reinsurers lowering exposure. Certain ships connected to the United States or Israel might not be insurable at any cost. Global container capacity is declining, carriers are rerouting around Africa, and freight rates to the UAE have skyrocketed, raising the possibility of extended delays and increased shipping expenses.