The escalating conflict in West Asia has led to a significant maritime crisis, with over 600 merchant ships stranded upstream of the Strait of Hormuz as of March 6, 2026. This critical chokepoint, through which one-fifth of the world’s oil and gas supplies pass, has become a focal point of geopolitical tensions.
On March 5, the crude oil carrier Sonangal Namibe, owned by a Houston-based company, was attacked, marking the ninth such incident since the conflict began. The Skylight, a U.S.-sanctioned vessel with predominantly Indian crew, was also targeted, highlighting the complex web of affiliations affecting insurance costs.
War risk insurance premiums have surged, with rates now ranging from 1% to 3% of vessel costs, according to David Osler of Lloyds List Intelligence. This increase means weekly premiums are now equivalent to annual costs, severely impacting shipping operations.
The insurance dilemma is further complicated by the affiliations of ship owners and operators, with those linked to Iran, the U.S., or Israel facing even higher rates. Historical precedents, such as Denmark’s recent legislation to provide war risk insurance, underscore the potential need for government intervention.
As the situation unfolds, the U.S. government has promised naval escorts for the stranded vessels, a move that could stabilize the region. However, the timeline remains uncertain, and the impact on global energy supplies and shipping costs continues to grow.
Published in SouthAsianDesk, March 7, 2026
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