Major P&I Clubs Refuse to Insure Military Risks for Vessels in the Persian Gulf and Strait of Hormuz Starting March 5, 2026

Leading global P&I clubs will cease to provide insurance for military risks for vessels entering the Persian Gulf, Iranian waters, and the Strait of Hormuz starting March 5, 2026. This decision was made by Gard, Skuld, NorthStandard, London P&I Club, and American Club amid escalating conflict between the US, Israel, and Iran.

The clubs' decision is driven by a sharp increase in military risks in the region following the start of Operation 'Epic Fury' on February 28, 2026. The US and Israel struck Iranian targets, including nuclear and missile programs, leading to retaliatory actions from Tehran, the closure of the Strait of Hormuz, and a significant reduction in shipping[1][4].

Dramatic Drop in Traffic

Traffic through the Strait of Hormuz has sharply decreased: on March 1, only 23 vessels (1 million tons DWT) passed through compared to the usual 100 vessels (over 10 million tons). The strait, through which 15–20% of the world's oil and 30% of LNG passes, has become a high-risk zone due to Iranian fast boats, mines, and anti-ship missiles[1].

Context of the Conflict

• On February 28, the US and Israel began strikes against Iran, destroying a significant portion of its Navy (over 50 ships) and missile capabilities[1].
• Iran closed the strait to shipping in an attempt to paralyze oil exports and deliver an economic blow to the West[4].
• Military activity continues: the US has extended its warning for vessels until March 7, and American troops have left bases in the Gulf[2][3].

The refusal of P&I clubs to insure military risks exacerbates the paralysis of commercial shipping, crippling energy supplies to Asia and worsening the global energy crisis[1].