Mideast Gulf ship insurance costs soar as US-Iran war escalates, say sources

LONDON, March 2 (Reuters) - The insurance cost of shipping goods through the Middle East Gulf has surged as much as five times in the past 48 hours since the U.S. and Israeli began airstrikes on Iran, with most underwriters not offering cover for any sailings through the Strait of Hormuz, insurance industry sources said on Monday.

War risk premiums have risen up to 1% of the value of a ship, from around 0.2% last week before the latest operations began, the sources said, adding that rates excluded the Strait of Hormuz.

This adds hundreds of thousands of dollars in further costs for every shipment.