War insurance costs to Israel soar after Iranian attacks, sources say
LONDON, June 17 (Reuters) - War risk insurance premiums for shipments to Israel are as much as three times higher than a week ago as the war between Israel and Iran entered its fifth day, industry sources said on Tuesday.
The cost of a seven-day voyage to Israeli ports was quoted between 0.7% and 1.0% of the value of a ship, versus around 0.2% a week ago, they said.
War risk premiums to Israel are still below a peak of over 2% in November 2023 that were quoted after a Hamas attack on Israel killed 1,200 people and triggered the Israeli invasion of Gaza.
Individual underwriters will price risk and rates differently, but this will add tens of thousands of dollars of extra daily costs for every voyage.
"Calls specifically to Israel are very much on a case-by-case basis with rates increased to anywhere up to 1% for a 7-day call, dependent on what cargo, ownership and port," David Smith, head of marine with insurance broker McGill and Partners, told Reuters.
Israel relies on sea lanes for much of its imports which are shipped to gateways that include the Mediterranean ports of Ashdod, which is close to Gaza in the south, and Haifa in the north, as well as the Red Sea port of Eilat.
Israel's Bazan Group shut down its Haifa oil refinery, the country's largest, on June 16 after its power station was damaged in an Iranian attack.
Nearly 30 vessels, many general cargo ships, were currently anchored around Haifa's bay, according to MarineTraffic ship tracking data on Tuesday.
All port terminals in Haifa were operating normally and remained fully operational, an Israeli source involved in Haifa's port industry said.
Many shipping companies are already wary of sailing to Israel due to the higher risk profile.
Yemen's Iran-backed Houthis have said they will attack any Israel-linked vessels despite reaching a ceasefire over U.S. and UK-linked ships in the Red Sea.
The militia announced in March a "maritime blockade" on Haifa port in response to Israel's ongoing conflict in Gaza.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
9 minutes ago
- Reuters
India's aviation watchdog cancels planned Air India audit, sources say
NEW DELHI, June 24 (Reuters) - India's aviation safety watchdog has cancelled its planned visit to Air India headquarters on Tuesday for an annual regulatory audit, two people with direct knowledge said. Air India late on Monday ceased all its operations to the Middle East, Europe and the East Coast of North America until further notice due to Israel-Iran tensions. One of the sources said that was a key reason for cancelling the audit as the airline was occupied with tackling the crisis. Ten officials from the Directorate General of Civil Aviation (DGCA) were to visit Air India headquarters near New Delhi on Tuesday for an annual audit, just as the airline is facing intense scrutiny after a plane crash killed 271 people. Air India and the DGCA did not respond to Reuters' request for comment.
The Independent
9 minutes ago
- The Independent
Status of ceasefire unclear after Iranian missile barrage strikes Israel after a first deadline
U.S. President Donald Trump announced that Israel and Iran had agreed to a 'complete and total ceasefire' soon after Iran launched a retaliatory limited missile attack on a U.S. military base in Qatar. But the status of a possible ceasefire remained tentative on Tuesday as an Iranian missile barrage struck Israel after a first deadline for the proposal. The Iranian barrages sent Israelis hurrying into bomb shelters as the sun rose, killing at least four people and injuring eight others, Israel's Magen David Adom rescue services said. Israel has yet to acknowledge Trump's proposal, which gives Israel more time to potentially strike back though Iran on its state television announced an overall ceasefire had begun at 7:30 a.m. local time. The barrage damaged at least three densely packed residential buildings in the city of Beersheba, police said. First responders said they retrieved four bodies from one building and were searching for more. Outside, the shells of burned out cars littered the streets. Broken glass and rubble covered the area. Hundreds of emergency workers gathered to search for anyone else trapped in the buildings. Police said some people were injured even while inside their apartments' reinforced safe rooms, which are meant to withstand rockets and shrapnel but not direct hits from ballistic missiles. The direct hit in the largest city in southern Israel came just days after the city's hospital sustained significant damage in a missile strike. The Israeli military said people could leave bomb shelters but cautioned the public to stay close to shelter for the coming hours. Trump says ceasefire is in effect Trump's announcement that Israel and Iran had agreed to a 'complete and total ceasefire' came soon after Iran launched a limited missile attack Monday on a U.S. military base in Qatar, retaliating for the American bombing of its nuclear sites. The U.S. was warned by Iran in advance, and there were no casualties. Trump's announcement on Truth Social said the ceasefire beginning about midnight Washington time would bring an 'Official END' to the war. Israel doesn't confirm ceasefire but appears to pause strikes Israel did not immediately acknowledge any ceasefire, but there were no reports of Israeli strikes in Iran after 4 a.m. in Tehran. Heavy Israeli strikes continued in Iranian cities until shortly before that time. Under the Trump plan, Israel was to halt its attacks on Iran by 1:30 p.m. Tehran time. There's been no report of Israel launching attacks against Iran since early Tuesday morning. Israel did not immediately acknowledge any ceasefire, but there were no reports of Israeli strikes in Iran after 4 a.m. in Tehran. Heavy Israeli strikes continued in Iranian cities until shortly before that time. The Israeli military declined to comment on Trump's ceasefire statement and the office of Israeli Prime Minister Benjamin Netanyahu did not immediately respond to a message seeking comment. 'As of now, there is NO 'agreement' on any ceasefire or cessation of military operations,' Iranian Foreign Minister Abbas Araghchi wrote in a post on X. 'However, provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am Tehran time, we have no intention to continue our response afterwards.' His message was posted at 4:16 a.m. Tehran time. Araghchi added: 'The final decision on the cessation of our military operations will be made later.' Writing over an hour after the first phase of the tentative ceasefire, which called for Iran to halt its attacks, Trump added: 'THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT! DONALD J. TRUMP, PRESIDENT OF THE UNITED STATES!' Trump describes conflict as '12 Day War' Trump gave the conflict between Israel and Iran a name: the '12 Day War.' That recalls the 1967 Mideast war, known by some as the 'Six Day War,' in which Israel fought a group of Arab countries including Egypt, Jordan and Syria. Trump's reference carries emotional weight for the Arab world, particularly Palestinians. In the 1967 war, Israel captured the West Bank and east Jerusalem from Jordan, the Gaza Strip and the Sinai Peninsula from Egypt, and the Golan Heights from Syria. Though Israel later gave the Sinai back to Egypt, it still holds the other territories. Trump communicated directly with Israeli Prime Minister Benjamin Netanyahu to secure the ceasefire, according to a senior White House official who insisted on anonymity to discuss the Monday talks. Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff communicated with the Iranians through direct and indirect channels. The White House has maintained that the Saturday bombing helped get the Israelis to agree to the ceasefire and that the Qatari government helped to broker the deal. It's unclear what role Ayatollah Ali Khamenei, Iran's leader, played in the talks. He said earlier on social media that he would not surrender. Attacks from Iran forces temporary closure of Israel's skies Israel's Airports Authority said Iran's barrage forced them to close the country's airspace to emergency flights for several hours. Some flights were forced to circle over the Mediterranean Sea, according to Israeli media. Israel's airports have been closed since the war with Iran began, but a handful of emergency flights started arriving and departing over the past few days. By early Tuesday, Qatar Airways resumed its flights after Qatar shut down its airspace over the Iranian attack on Al Udeid Air Base. Flight-tracking data showed commercial aircraft again flying in Qatari airspace, signaling Doha believed the threat on the energy-rich nation had passed. Conflict has killed hundreds In Israel, at least 24 people have been killed and more than 1,000 wounded in the war. Israeli strikes on Iran have killed at least 974 people and wounded 3,458 others, according to the Washington-based group Human Rights Activists. The group, which has provided detailed casualty figures from Iranian unrest such as the protests surrounding the death of Mahsa Amini in 2022, said of those killed, it identified 387 civilians and 268 security force personnel. The U.S. has evacuated some 250 American citizens and their immediate family members from Israel by government, military and charter flights that began over the weekend, a State Department official said. There are roughly 700,000 American citizens, most of them dual U.S.-Israeli citizens, believed to be in Israel. ___ Gambrell reported from Dubai, United Arab Emirates, and Lidman reported from Tel Aviv, Israel. Associated Press writers Josef Federman in Jerusalem, Qassim Abdul-Zahra in Baghdad, Abby Sewell in Beirut, Elise Morton in London, Geir Moulson in Berlin, Ella Joyner in Brussels, Edith M. Lederer at the United Nations and Stephanie Liechtenstein in Vienna contributed to this report.
Sky News
14 minutes ago
- Sky News
Iranian state media says ceasefire with Israel has begun, after night of deadly strikes
Iranian state television says a ceasefire in its war with Israel has now begun, following a night of missile strikes. Israel's ambulance service says at least four people were killed, with footage from southern Israel showing extensive damage to what appeared to be a residential building. Sirens sounded in several areas - and members of the public who received an alert were ordered to take shelter - with explosions heard over Tel Aviv. Early on Tuesday morning, US President Donald Trump declared: "The ceasefire is now in effect. Please do not violate it!" The message on Truth Social followed a series of posts on Monday, in which the US President declared that a "complete and total ceasefire" had been agreed upon between the two countries and would begin at approximately 5 am UK time. In a post on X, Iran's foreign minister Abbas Araghchi, confirmed that Tehran "has no intention" to continue its response - provided the Israeli regime "stops its illegal aggression against the Iranian people". Israeli media reports suggested Benjamin Netanyahu was also on board - provided Iran stops firing missiles towards the country - but there has been no official confirmation. Mr Trump had written: "Officially, Iran will start the CEASEFIRE and, upon the 12th hour, Israel will start the CEASEFIRE and, upon the 24th Hour, an Official END to THE 12 DAY WAR will be saluted by the World. "On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end, what should be called, 'THE 12 DAY WAR.' "This is a war that could have gone on for years, and destroyed the entire Middle East, but it didn't, and never will!" 2:58 In an interview with Sky News' partner network NBC, the president said it was a "great day" for the US and the Middle East - and a "wonderful day" for the world. "I'm very happy to have been able to get the job done. A lot of people were dying, and it was only going to get worse. It would have brought the whole Middle East down," he said. Mr Trump said he thinks the ceasefire is "unlimited" and is "going to go forever" - adding: "I don't believe they will ever be shooting at each other again." Analysis: Seasoned diplomats startled at developments I've spoken to a diplomat involved in the fast-moving developments of the past 12 hours. The diplomat, speaking on condition of anonymity because they are not permitted to speak publicly, told me that Donald Trump called the Emir of Qatar yesterday evening. Trump told the emir that he had a commitment from Israel that it would cease its attacks on Iran. Trump asked the emir to try to secure the same commitment from the Iranians. The Qatari PM and vice president JD Vance engaged on the details of what they hoped could be achieved. The Qatari PM then spoke to Iranians (it's not clear who within the Iranian power structure the Qataris spoke to, and my source wouldn't say). The Iranians agreed to stop their attacks. Shortly after, Iranian foreign minister Abbas Araghchi posted the confirmation, saying: "The military operations of our powerful armed forces to punish Israel for its aggression continued until the very last minute, at 4am. "Together with all Iranians, I thank our brave armed forces who remain ready to defend our dear country until their last drop of blood, and who responded to any attack by the enemy until the very last minute." My source could not comment on the complex timeline (six hours, 12 hours, 24 hours) laid out in Donald Trump's Truth Social post, but it's thought that this might have been overtaken now by agreements made by Trump, the Israelis, the Iranians, and Qatar. Time will tell. It's clear from the tone of the messages I have had from various sources that the pace and style of the developments of the past 12 to 24 hours have left even these seasoned diplomats startled. Messages from several Middle Eastern diplomats have included emojis reflecting exasperation, surprise and bewilderment. Just hours earlier, people in the Qatari capital Doha had stopped and gazed up at the sky as Iranian missiles flew to the American al Udeid base and interceptors fired. Officials said there were no casualties, and the US later confirmed it had been warned about the attack by Iran. Mr Trump was in the Situation Room in the White House as the strikes took place. He later claimed on his social network that the missiles were a "very weak response", which the US "expected" and "very effectively countered". The Iranian attack came after the US dropped "bunker buster bombs" on three key nuclear sites in Iran over the weekend. In a new interview on Fox News, US Vice President JD Vance claimed Iran is no longer able to build nuclear weapons after the American attacks.
