Transit costs for oil vessels through the Strait of Hormuz have escalated sharply after the Iran war, led by war-risk premiums and cargo insurance, Emirates National Oil Company director Paul Bradshaw said at the Asia Pacific Petroleum Conference in Singapore on Wednesday. Reuters reported his remarks as industry observations, not an official insurance index.
Bradshaw said he has seen cargo insurance “anywhere up to five, six percent,” which “could be another $10 million on your cargo insurance.” On exit war-risk cover, he said the rate “used to be zero prior, and now the rate is anything up to 10 percent of the cargo.” Reuters paraphrased transit costs moving into a $10 million to $20 million range, with some market participants declining cover. Bradshaw also said some national oil companies are taking shipping in-house for more control over exits in conflict. Limited shipowners remain willing to take the risk, he added. Attribute all figures to the ENOC executive at APPEC.
Sources: Reuters Singapore / APPEC, Sep. 9, 2026 (Paul Bradshaw, ENOC).
