News ID : 278565
Publish Date : 3/1/2026 12:19:06 AM
Oil shipping costs in Hormuz strait could surge 1000% amid regional tensions

Oil shipping costs in Hormuz strait could surge 1000% amid regional tensions

The cost of transporting crude oil through the strategically vital Strait of Hormuz could increase by up to 1,000 percent compared to early-year levels if regional tensions persist or escalate, according to the specialized energy portal Oil Price.

The report comes as the Financial Times indicated that major insurance companies are preparing to cancel coverage policies and significantly raise premiums for vessels operating in the Persian Gulf and the Strait of Hormuz. Even in the absence of a formal blockade, the sharp rise in insurance costs alone could render commercial maritime voyages economically unviable, potentially disrupting global oil traffic to a considerable extent.

Energy analysts warn that any closure of the Strait of Hormuz—the world's most critical oil transit chokepoint—would have the most significant global impact on energy markets, potentially driving crude oil prices beyond $150 per barrel.

Earlier on February, the United States and the Zionist regime targeted sites within Iran—a move that was met with Iran's missile response directed at Israel and US interests in Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar; furthermore, Iran is not permitting vessels to transit through the Strait of Hormuz.


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