War-related losses across the maritime sector are mounting as attacks on commercial shipping spread across the Middle East, putting further pressure on marine insurers and reinsurers. Market estimates indicate that claims linked to the conflict could reach or exceed $2 billion, with some projections placing the eventual bill as high as $3 billion.
The Strait of Hormuz has remained a major source of disruption, with attacks and restrictions sharply reducing vessel movements through the strategic waterway. The resulting exposure has affected oil tankers, container ships and bulk carriers, increasing both physical losses and insurance costs.
War-risk premiums have risen sharply on vessels operating in high-risk areas. In the southern Red Sea, premiums climbed to more than 1% of a vessel’s value in July, compared with around 0.3% a week earlier, while rates for some Saudi-linked vessels reached as high as 3%.
The expansion of attacks beyond Hormuz is creating additional challenges for shipping operators. The July attacks on Saudi-linked tankers near the southern Red Sea prompted insurers to reassess exposure around the Bab el-Mandeb and Gulf of Aden, where maritime traffic has already remained below pre-crisis levels.
The financial impact extends beyond direct vessel and cargo damage. Higher war-risk premiums, rerouting, longer voyages and additional security measures are increasing operating costs for carriers and cargo owners. Even relatively small insurance-rate increases can add hundreds of thousands of dollars to the cost of an individual voyage.
According to a May 2026 Howden Re assessment cited by Insurance Business, the conflict could generate $2 billion to $3 billion in market-wide claims across the war, terrorism and political violence insurance segment. That compares with estimated annual global premium income of roughly $1.5 billion to $2 billion for the segment.
With security risks now affecting multiple maritime corridors, insurers are likely to maintain tighter underwriting conditions and higher premiums for vessels entering exposed waters. Shipping companies, meanwhile, face continued uncertainty over routing, insurance availability and the cost of maintaining services through the region.