Radio National Breakfast Russia takes advantage of Hormuz Strait closure
Mar 8, 2026
Michelle Wiese Bockmann, senior maritime intelligence analyst at Windward, explains how the Strait of Hormuz disruption is reshaping shipping and insurance. She discusses skyrocketing war-risk premiums. She outlines how insurers and reinsurance moves are reacting. She describes ships turning off transponders and how Russia could exploit the disruption.
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Insurers Won't Underwrite Dangerous Hormuz Transits
- Maritime insurers lack confidence to underwrite Strait of Hormuz transits despite sky-high premiums.
- Michelle Wiese Bockmann said 13 attacks and 11 seafarer deaths make the strait effectively closed and militaries assess further attacks will happen.
Buy War Risk Cover And Expect Million Dollar Premiums
- Ships must buy war-risk extensions and pay single-voyage additional premiums to enter declared war-risk zones.
- Wiese Bockmann noted premiums can reach about 3% of vessel value, costing millions for VLCCs valued $50–$120 million.
US Reinsurance Eases Fears But Details Matter
- The US reinsurance offer helps only if fine print and implementation reassure markets.
- Wiese Bockmann said Lloyd's reaction was positive but the situation remains too volatile for Western-affiliated vessels to transit openly.