Middle East — 2026-06-28

Insurers Slash War Premiums for Strait of Hormuz Ships as Ceasefire Prospects Improve

BLUFCargo underwriters who refused to follow hull rates downward read the ceasefire correctly, and resumed hostilities now set conditions for hull repricing back toward pre-ceasefire levels.

Hull war premiums for Hormuz transits halved in six days after the June 17 US-Iran ceasefire, dropping from roughly 5% to 2% of vessel value with discounts, per brokers cited by the Financial Times 123. War cargo insurance covering oil and grain held flat despite the hull rate movement, with brokers telling the FT that route-stability metrics had not shifted 2. WTW broker James Reason told the FT that mines persist in Hormuz transit corridors and the central route remains closed to commercial traffic, while the IRGC Navy warned June 24 that any transit route not coordinated with Tehran is "unacceptable and dangerous" 2. The Khaleej Times reported June 28 that hostilities had resumed over the prior two days: Iranian drones struck a cargo ship, the US struck Iran in response, Iranian naval forces hit US military targets in the region, and Bahrain reported being struck on Saturday 4.

Analysis
Cargo underwriters who held pricing flat while hull rates halved were correct: June 27-28 hostilities reversed the repricing trajectory before it could consolidate. The corroboration for resumed hostilities is thin: secondary outlets amplifying a Financial Times anchor, with no independent primary sourcing. Flat cargo pricing and the IRGC's June 24 warning against unsanctioned transits were leading indicators that the hull repricing would not hold. The London market now faces repricing, not consolidation. Moderate confidence rests on convergence of those warning indicators, sustained cargo pricing, and June 28 hostility reporting. The resumed exchange may represent a localized flare rather than ceasefire collapse, in which case hull premiums stabilize near current levels.

4 sources

Insurers slash war premiums for Strait of Hormuz ships - Financial Times
Hormuz war premiums halve in six days. London's underwriters are not celebrating yet - Insurance Business
Hull war premiums halve after Iran ceasefire - Business Insurance
War-risk insurance premiums for Gulf shipping set to stabilise after US-Iran ceasefire - Khaleej Times