Ships Paying $500K Per Day in Strait of Hormuz Delays: Who's Fronting the Bill?

• Oil traffic through the Strait of Hormuz has significantly decreased, with many tankers untracked due to heightened tensions.
• War risk premiums for shipping have risen astronomically to around 8.5%, adding substantial costs to oil transport.
• The simultaneous pressure on both the Strait of Hormuz and the Suez Canal creates a highly volatile and uncertain environment for global energy markets.

Geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, are causing significant disruptions to global oil and LNG traffic. Tanker transits are down, war risk insurance premiums have surged to 8.5%, and shipping costs are increasing, leading to higher prices for buyers, especially in Asia, and creating persistent market volatility.