Dire Straits: Commercial Policyholders Are Navigating Troubled Waters In The Persian Gulf

In Short

The Situation: At least 1,000 vessels, including 500 oil and gas tankers and 500 container ships, are currently trapped or stalled on either side of the Strait of Hormuz as a result of the ongoing U.S.-Israel-Iran conflict.

The Result: Various lines of insurance coverage may respond with coverage for the attendant property and business interruption losses.

Looking Ahead: Commercial policyholders should proactively evaluate their existing insurance programs when considering their U.S.-Israel-Iran conflict exposures.

The current U.S.-Israel-Iran conflict, including the effective closure of the Strait of Hormuz, has created an unprecedented convergence of marine insurance exposures. As of the date of this Commentary, reports indicate that more than a dozen vessels have been attacked by Iranian drones and missiles, and that Iran has also attempted to mine the Strait of Hormuz. Approximately 1,000 vessels, including roughly 500 oil and gas tankers and 500 container ships, are