Lloyd's of London triples Hormuz transit premiums — shipping costs surge

Lloyd’s of London raised war risk insurance premiums for vessels transiting the Strait of Hormuz by 300%, effective immediately. The Joint War Committee added the entire Persian Gulf to its listed exclusion zone for the first time since the 1980s Iran-Iraq war. A single Very Large Crude Carrier now faces $2.5 million in insurance costs per Hormuz transit, up from roughly $400,000 before the crisis. That cost gets priced into every barrel. Brent responded with a $3 jump in morning trading. The market is no longer pricing supply risk. It is pricing the cost of moving supply through a war zone where the rules are being written by gunboats and crypto wallets.