War risk drives up tanker insurance and extends oil shipping times, analyst says
Insurance premiums reportedly rose tenfold while rerouted voyages increased from 17 to 35 days.
An energy analyst cited by IRNA says conflict-related shipping risks have sharply increased tanker insurance costs and doubled some oil transit times, potentially raising global energy prices.
War-risk insurance for oil tankers has risen from about 0.05% to at least 0.5% of cargo value, while rerouting around Africa has extended some oil shipments from 17 to 35 days, energy analyst Ehsan Janabi told Iran’s IRNA. He said the higher insurance, fuel and freight costs could push up global oil and energy prices. Janabi also warned that prolonged disruptions around the Strait of Hormuz and Bab el-Mandeb could add further pressure to refineries and LNG markets.