Hormuz Insurance Costs Skyrocket 12-Fold Despite Trump’s Pricing Pledges

The cost of insuring vessels transiting the Strait of Hormuz has surged by approximately 12 times, as war risks paralyze the world’s most vital oil artery. Insurance brokers in London reported that premiums jumped to 3% of a ship's value—up from just 0.25%—forcing owners to seek coverage worth millions of dollars per transit. President Donald Trump attempted to calm markets via Truth Social, promising that the U.S. International Development Finance Corporation (DFC) would provide "very affordable" insurance. However, the move caught global insurers by surprise, with experts questioning the DFC’s legal and practical capacity to back international commercial shipping in a high-intensity war zone.

The maritime crisis intensified following attacks on at least seven oil tankers since Sunday and reports of hostile radio warnings from the IRGC. While Trump suggested U.S. Navy escorts for tankers, maritime security advisors warned that such operations are logistically daunting and could expose U.S. warships to saturated Iranian missile strikes. Currently, ships linked to the U.S., UK, or Israel are being quoted premiums triple the standard high-risk rate. Consequently, Brent crude remains elevated at around $81 per barrel, reflecting a 12% overall increase since the start of the military campaign.