Tanker War-Risk Premiums Surge 1,900% on July 22 as U.S. Strikes Continue

According to Devere Group, war-risk insurance premiums for tankers crossing the Strait of Hormuz surged nearly 1,900% on July 22 following continued U.S. Central Command strikes against Iran, far outpacing crude oil's 4% gain. For a $100 million tanker, the insurance cost for a single transit climbed from approximately $250,000 to about $5 million, according to Lloyd's Market Association figures cited by Devere Group.

The Strait of Hormuz handles roughly 20.9 million barrels of oil per day, representing about 20% of global petroleum consumption. Devere Group CEO Nigel Green noted the divergence signals acute physical risk: "When that premium rises by close to 1,900%, it's telling you the people closest to the physical risk think the danger is real and current." Sustained cost increases could tighten shipping capacity and pressure fuel prices, inflation, and broader market volatility.