Layer 23.jpg Layer 23.jpg

Iran Conflict

6 March 2026

Impact on Shipping

Following US and Israel strikes on Iran on 28 February 2026, Iran retaliated by striking targets across the Middle East, resulting in significant disruption to cargo availability, production, transportation and commercial shipping operating in and/or transiting the Persian/Arabian Gulf, Strait of Hormuz, Red Sea and Gulf of Aden. 

On 2 March 2026, Iran’s Islamic Revolutionary Guard Corps announced the Strait of Hormuz as “closed”: “The strait is closed. If anyone tries to pass, the heroes of the Revolutionary Guard and the regular navy will set those ships ablaze.”

Merchant vessels in the Strait of Hormuz have been attacked, with tragic fatalities and injuries to seafarers, as well as damage to vessels and cargo. Although the Strait is not legally closed, many vessels are now stranded in the Persian/Arabian Gulf. Vessels operating in the region are urged to conduct thorough risk assessments, maintain enhanced monitoring of all relevant advisories, and maintain vigilance in line with the latest BMP Maritime Security guidelines. As well as physical safety, mental health and welfare of the crew should also be prioritised to ensure support, briefings and rest. There are reports of jamming and spoofing potentially impacting electronic navigation, so vessels should maintain heightened vigilance and preparedness, and navigate with caution.  

Access the latest MSCIO Maritime Security Notice from EU Naval Force (EUNAVFOR) Atalanta here. See below for links to other sources of information.

Whilst monitoring the dynamic situation, international commercial and legal teams are assessing exposures and making contingency plans. The Club has seen questions ranging from entitlement to give/refuse voyage orders, discharge at an alternative ports, obligation to take an alternative route or terminate a contract, all of which will depend on the specific wording of the contract - relevant war risks clauses, off-hire provisions, safe ports/berths warranties, as well as specific force majeure and/or termination clauses. Our claims teams are on standby to advise Members and Assureds to enable you to anticipate and minimise the operational and commercial impact where possible.

Please get in touch with your usual Claims contact for assistance.

 

Insurance Implications

War risks AP areas updated to include Persian/Arabian Gulf, Gulf of Oman, Indian Ocean, Gulf of Aden and Southern Red Sea waters as per the Club’s Circular of 5 March 2026. 

War risks cover cancelled in respect of Fixed Premium and Charterers business as per the Club’s Circular of 1 March 2026  in relation to:

  • Iran and Iranian waters including coastal waters up to 12 nautical miles offshore
  • Persian/Arabian Gulf and adjacent waters, including the Gulf of Oman and waters west of the line from Oman’s territorial limit off Cape al-Ḥadd at 22°42.5'N, 59°54.5'E northeast to the Iran-Pakistan border at 25°10.5'N, 61°37.5'E.

Coverage may be reinstated at terms to be agreed by the Association.

Deviation - Liabilities may arise due to deviation from the contractually agreed voyage. Additional cover for deviation is available with advance notice. 

Please reach out to your usual contact in Underwriting for further details.

 

Correspondent update

From Mutual Marine Services Al Mushtaraka Ltd:

06/03/2026 - Sitrep 6.

"The current situation in the Middle East remains extremely tense, we provide this update obtained from various sources:

Strait of Hormuz - Remains closed.

Any owners operating and trading within the Arabian Gulf would be advised to check with their H&M underwriters, and P&I Club, with regard to war risk cover.

From media reports, we note some ships in the Arabian Gulf have been attacked.

Port Situation:

UAE - all port operating. Some intermittent stoppages.

Oman - all ports working.

Qatar - ports are working.

Kuwait - all ports working. Some intermittent stoppages.

Iraq - all ports working.

Bahrain, suspended operations.

Saudi Arabia, all ports on the Arabian Gulf side are operational. Red Sea Ports are currently not effected and operating normally.

Obviously the situation is fluid and changing by the hour, our team is closely monitoring the situation across all ports under our coverage. We will endeavour to keep all updated in a timely manner."

 

External Links   

Back to News Alerts