Insurance companies are cancelling war risk coverage for vessels in the Middle East Gulf as the widening Iran conflict disrupts shipping, leaving tankers damaged or stranded and at least two people dead.
Shipping through the Strait of Hormuz between Iran and Oman, which carries around one-fifth of oil consumed globally as well as large quantities of gas, has ground to a near halt after vessels in the area were hit as Iran retaliated against United States and Israeli strikes.
One tanker in the region was ablaze on Monday, at least four others were damaged and about 150 ships were stranded.
The disruption and fears of prolonged closure have caused oil and European natural gas prices to jump, with Brent crude futures up as much as 13% as the conflict triggered multiple oil and gas shutdowns in the Middle East.
About 10% of the world's container ships are ensnared in the broader backups, and cargo could soon start piling up at ports and trans-shipment hubs in Europe and Asia, Jeremy Nixon, CEO of container carrier Ocean Network Express, known as ONE, said on Monday.
Iran has said it closed navigation through the critical waterway, prompting Asian governments and refiners to assess oil stockpiles.
Iran's Revolutionary Guards commander said Iran would fire on any ship attempting to transit the vital 34km-wide maritime chokepoint, Iranian media reported.
The tankers were clustered in open waters off the coasts of major Gulf oil producers, including Iraq and Saudi Arabia, as well as LNG giant Qatar, according to ship-tracking data from the MarineTraffic platform.
In the latest incident, Iran's Revolutionary Guards said the Honduran-flagged Athe Nova was burning in the Strait of Hormuz after being hit by two drones, Iranian news agencies reported.
The US-flagged product tanker Stena Imperative was....
