Cost of insuring vessels in Strait of Hormuz has plunged,with war risk premiums dropping from about 5% to 2% of a ship's value in past week . This follows a ceasefire deal between U.S. and Iran, formalized in memorandum to halt hostilities.
Financial Times reports this insurance drop means savings in hundreds of thousands for shipowners. Before the deal,insurance costs had shot up due to attack risks in region, some big tankers facing weekly premiums in millions .
Even with lower costs now, insurers and shipowners remain wary. Cargo insurance against war risks hasn't budged much,showing market still nervous about threats . Reports of possible sea mines along shipping routes add to this worry .
Drop in premiums shows a shift in maritime insurance,highlighting fragile peace in a conflict-prone region. As situation unfolds,shipping industry players likely to stay on guard,weighing cost benefits against backdrop of tensions…
