Latest news with #OilTankers
Telegraph
a day ago
- Business
- Telegraph
Cargo ships told to carry more guns when sailing past Iran
Oil tankers sailing past Iran have been told by London insurers to carry more guns and ammunition and employ more security staff. Ships moving through the Strait of Hormuz, a maritime choke point between Dubai and Iran, are facing far higher insurance costs to cover the risk of navigating the waterway amid simmering tensions between Iran, the US and Israel. As part of 'war risk insurance' some underwriters are stipulating that vessels carry a certain quantity of ammunition alongside armed guards. Others are offering discounts based on the level of security on a vessel. David Smith, of broker McGill and Partners, said: 'We have seen war insurance for specific regions where they offer discounted premiums when armed guards are on board, and in certain circumstances, insurers even stipulate the minimum quantity of ammunition supplied to those armed guards and the number of armed guards – in order to fight off a potential boarding.' The Strait of Hormuz is one of the world's largest shipping routes for oil and gas supertankers, with around 20pc of global oil supply travelling through the waterway. Risks in the region have mounted in the past few months, with Houthi rebels in Yemen threatening ships sailing into the Red Sea, which sits on the other side of the Arabian Peninsula. Impact on London insurance London's insurers were left on the hook for a $40m (£30m) loss last month after the Magic Seas cargo ship vessel was blown up by Houthi militants using drones and rocket-propelled grenades in the Red Sea. Two crew members were killed. The Strait of Hormuz, which is 1,000 miles overland from the Red Sea, is largely protected from Houthi missile attacks. The risks in the Strait come from Iranian authorities impounding ships, blocking the waterway, as well as naval mines or missile strikes from Iran. In a recent bulletin, the joint war committee of the Lloyd's Market Association, an insurance marketplace, warned that 'ship owners have reported a heightened level of harassment when transiting' the Strait as tensions in the Middle East escalate. 'If you're trying to get war risk insurance in the Strait of Hormuz, it's going up dramatically. You can get coverage, but it's a lot more expensive than a year ago. It's available selectively – some coverage is being written and some isn't. If someone needs it, we could handle it', said Steve McGill, a veteran insurer who founded McGill and Partners in 2019. Some ships, particularly those that have recently docked in Israel or carry certain targeted flags, are even struggling to buy insurance altogether because of the risk of being attacked. Marine war risk insurance is one of the biggest types of policy classes written at Lloyd's of London, the UK's insurance market. Insurers such as Beazley, Navium Marine and Travelers are the big names in the market. Mr McGill said the ability of London's insurance market to deal with complex issues like the Strait of Hormuz showed it was the 'jewel in the crown' of Britain's financial services industry. 'London's insurance market is a phenomenal example of Britain at its best. It's an extraordinary marketplace, and it's a great success story. It's still the best in the world', he said.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Europe Gets Tougher on Putin
European leaders on Friday at long last cranked up sanctions on Russia, sending Vladimir Putin a message that there will be more economic costs if he continues his drone and missile barrages on Ukraine. Now it's Washington's turn. Brussels' latest sanctions package ratchets up economic pressure on Moscow by closing loopholes and punishing foreign companies that circumvent them. Europe has already ended most of its Russian natural gas imports by pipeline. Oil tankers that are insured by European companies are also prohibited from transporting Russian crude sold at more than $60 a barrel.
