Saagar

War risk insurers submitted cancellation policies for notices covering ships moving through the key oil choke point.

Prices will be set to rise 50%.

Of course, that's going to be passed on.

for all of us in the price of oil.

Insurance prices for ships traveling through the Gulf had been about 0.25% of the replacement cost of the vessel.

That could now jump up as much by half.

So for example, a $100 million vessel, this would mean an increase of $250,000 to $375,000 per voyage.

Insurance costs for ships calling at Israeli ports will also be set to rise by some 50% as underwriters are bracing for retaliatory action by Iran.

Cargo war risk insurers, which cover commodities on tankers, also said they were prepared to cancel policies on Monday.

After canceling policies, the insurers are then expected to renegotiate coverage, obviously at higher prices.

Pretty interesting, right?

A bigger, bigger question here about how insurers can just cancel your policy if they want to.

So Reuters reporting this morning from oil analysts that you are probably set to see a major increase in price of gas at the pump starting this week.

Oil is currently set to jump at least 10% on the Iran conflict.

Analysts predicting it could go to some $100 per barrel.

It was between $72 and $65 at the close of markets on Friday.

So it's pretty significant, almost a 30% increase.

Also, I talked about the airspace shutdown that happened.

Well, there has also been a major shutdown in sea traffic, not just in the Straits of Hormuz, but the Dubai port, DP World, will suspend Dubai operation.

And MSC is stopping all Middle East bookings.