Gulf Crisis Insurance Losses Reach $1.9bn as Marine War Exposure Continues

TradeWinds reports that insurance losses arising from the continuing Gulf crisis have reached approximately $1.9 billion, according to figures from Lloyd’s of London, with further claims expected as the conflict continues.

In an article published on 3 September 2026, TradeWinds reports that Lloyd’s has assessed losses from the Middle East conflict at £1.4 billion ($1.9 billion) for the first half of the year.

The losses follow attacks on more than 70 ships and oil and gas facilities over the past six months and extend beyond marine insurance to include damage arising from missile and drone attacks on infrastructure across the Gulf region.

According to TradeWinds, Lloyd’s considers the losses incurred to date to be manageable, although it expects further losses as the conflict develops. Market sources cited by TradeWinds suggest that losses have been broadly divided between marine war risks and land-based exposures, with major energy infrastructure losses contributing significantly to the overall figure.

Marine War Risk Remains a Key Concern

For the shipping market, perhaps the more significant issue is not simply the value of claims already incurred, but the continuing concentration of vessels around ports and strategic chokepoints.

TradeWinds reports that approximately 400 vessels and 6,000 seafarers remain caught within the Gulf, while the concentration of vessels in high-risk locations creates the potential for significant accumulation losses arising from a single attack, casualty or blockage.

War risk premiums have consequently increased substantially, particularly for vessels navigating the Strait of Hormuz and other designated high-risk areas.

Shipowners operating in these areas may be required to purchase additional war risk cover for exposures including hull damage and third-party liabilities, including pollution and liabilities arising from injury or death of seafarers. TradeWinds also notes that the geographical high-risk area has expanded as the conflict has continued and following the resumption of Houthi attacks against Saudi-linked shipping.

Capacity Remains Available

Despite the scale of the losses, an important feature of the report is that the international insurance market continues to provide marine war capacity.

TradeWinds reports that Lloyd’s chief executive Patrick Tiernan confirmed that the market continued to offer war risk quotations even where shipowners ultimately decided that the risks of undertaking a voyage were too great. Additional marine war capacity has also entered the market, including facilities backed by Chubb and Beazley.

Lloyd’s does not currently expect losses arising from the conflict to have a material impact on its overall profitability.

Orion Perspective

The figures reported by TradeWinds demonstrate the scale of the exposure now being absorbed by the international war risk market, but they also underline its continuing ability to provide capacity during a major geopolitical event.

For shipowners and operators, however, the position can change quickly. Additional Premium rates, geographical trading restrictions, cancellation provisions and the availability of capacity can all respond rapidly to changes in the security environment.

For vessels considering Gulf and Strait of Hormuz transits, the issue is therefore no longer simply whether war risk insurance is available. Owners need to consider the price and terms of the available cover, the scope of Hull War and P&I War protection, applicable high-risk area requirements and the potential insurance implications of voyage and routing decisions.

With transits through the Strait of Hormuz still reported to be significantly below pre-crisis levels, the marine insurance market will continue to monitor both the frequency of attacks and the potential accumulation of vessels and insured values within the region.

Source and credit: This Insight is based on reporting by TradeWinds, “Lloyd’s of London says losses from Gulf crisis hit $1.9bn”, published 3 September 2026. Full credit for the underlying news reporting and Lloyd’s commentary belongs to TradeWinds.