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Fact Check: Insurance rates for vessels in the Strait of Hormuz jumped over 60%.

Fact Check: Insurance rates for vessels in the Strait of Hormuz jumped over 60%.

Published June 22, 2025
by TruthOrFake AI
✓
VERDICT
True

# Fact Check: "Insurance rates for vessels in the Strait of Hormuz jumped over 60%." ## What We Know Recent reports indicate that insurance rates for...

Fact Check: "Insurance rates for vessels in the Strait of Hormuz jumped over 60%."

What We Know

Recent reports indicate that insurance rates for vessels navigating the Strait of Hormuz have indeed increased by more than 60%. According to Insurance Business America, marine insurers have adjusted their pricing in response to heightened security concerns stemming from escalating tensions between Israel and Iran. The typical insurance premium for hull and machinery cover has risen from approximately 0.125% to around 0.2% of the vessel's value. For example, insuring a $100 million ship now costs about $200,000 for a single passage through the Gulf region.

Additionally, ShippingWatch corroborates this information, noting that the price hikes are a direct reaction to the increasing risks associated with sailing through Iranian waters. The Financial Times also highlighted this surge, emphasizing that the insurance market is reacting to the broader implications of the conflict, which threatens shipping in this crucial maritime corridor (Oil Price).

Analysis

The claim that insurance rates for vessels in the Strait of Hormuz have jumped over 60% is supported by multiple credible sources. The reports from Insurance Business America and ShippingWatch both reference data from Marsh McLennan, a leading global insurance broker, which adds weight to their reliability. The consistency across these sources suggests a well-documented trend in the insurance market responding to geopolitical tensions.

Moreover, the Financial Times and Atlas Magazine further validate the claim, providing context about the ongoing conflict and its implications for maritime safety. The increase in premiums reflects not only the direct risks of physical attacks but also the broader uncertainty surrounding potential future escalations in the region.

While the sources used are reputable, it is important to note that they may carry some inherent biases, particularly in how they frame the geopolitical context. However, the factual data regarding the percentage increase in insurance rates remains consistent across multiple reports, reinforcing the credibility of the claim.

Conclusion

Verdict: True. The evidence clearly supports the assertion that insurance rates for vessels in the Strait of Hormuz have increased by over 60% due to rising tensions in the region. The data from multiple reputable sources confirms this significant rise in premiums, reflecting the heightened risks associated with navigating this critical maritime corridor.

Sources

  1. Shipping cover leaps by 60% as tensions rise | Insurance Business America
  2. Ship insurance prices in Strait of Hormuz have risen 60% in a few days
  3. Strait of Hormuz Tensions Drive 60% Surge in Tanker Rates
  4. Insurance Costs for Ships in Strait of Hormuz Rise Over 60%
  5. Middle East conflict: Marine insurance rates surge by 60%
  6. Middle East: irrational increase by 60% in ship insurance prices

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