Update on Iran-Israel Tensions from the LMA: Conflict Details Discussed
In the heart of the Middle East, the Strait of Hormuz continues to be a critical chokepoint for global oil supplies, with the ongoing tensions between Israel and Iran causing a significant increase in maritime risks.
The London insurance market's Joint War Committee recently convened to review the latest developments between the two nations. Meanwhile, Saleem Khan, the Chief Data & Analytics Officer at Pole Star Global, has penned two insightful pieces discussing the potential impact of the Iran-Israel conflict on shipping and energy markets, as well as the rising shipping risks due to the escalating military exchanges.
Currently, the Strait of Hormuz, through which 20% of the world's oil passes, is a cause for concern. Authorities such as the Joint Maritime Information Center (JMIC) and UK Maritime Trade Operations (UKMTO) are advising vessels to maintain heightened alertness. Thorough threat and voyage-specific risk assessments are recommended before transiting the Strait and nearby areas, with enhanced lookout protocols and radar reliance suggested due to ongoing electronic interference in the region.
Iran is reportedly militarily prepared to potentially close the Strait, deploying anti-ship missile systems, fast attack boats, naval mines, and shoreside missile batteries. Such a closure would significantly affect the world's petroleum liquids supply, including crude exports from regional producers like Saudi Arabia, UAE, Iraq, and Kuwait. However, it's important to note that Iran retains full control over any decision to close the waterway.
Despite the increased threats, daily vessel traffic remains steady at an average of around 114 vessels transiting the Strait as of June 2025. Commercial vessels experience delays or rerouting due to congestion or security concerns, and shipowners are exercising increased caution.
Potential triggers for disruption include attacks by Iranian proxy groups or direct usage of mines, anti-ship missiles, and electronic jamming, notably AIS signal interference near Iranian ports. Though a complete blockade is considered unlikely due to the international backlash it would provoke, any aggressive action could provoke regional naval confrontations impacting the security of maritime navigation.
In light of these risks, vessel operators are urged to conduct detailed risk and threat assessments, maintain robust contingency and rerouting plans, stay updated with credible intelligence, and follow all recommended Best Management Practices for Maritime Security (BMP-MS).
The London market continues to support trade by providing coverage options for legitimate marine risks in the region. Maritime commerce is not currently being targeted directly by Israel or Iran. The Listed Areas for ships calling or transiting most of the Middle East have not been changed, and there is no information about Hiscox Developing a new security product to combat shipping seizures by nations.
In summary, the Strait of Hormuz remains a critical chokepoint with elevated maritime risks due to Israel-Iran tensions, but passage continues with caution. Continuous monitoring and adherence to stringent security protocols are essential to mitigate risks of disruption in this volatile environment. Saleem Khan's pieces offer valuable insights into this complex situation, providing a comprehensive analysis of the risks and recommendations for shipping stakeholders.
- The Joint War Committee, in the midst of the ongoing tensions between Israel and Iran, recently held a meeting to explore the latest updates regarding the situation.
- Saleem Khan, Chief Data & Analytics Officer at Pole Star Global, has published two analytical articles discussing the potential influence of the Iran-Israel conflict on shipping and energy markets, as well as the rising shipping risks due to the increasing military exchanges.
- In the Strait of Hormuz, which sees 20% of the world's oil transit, authorities like the Joint Maritime Information Center (JMIC) and UK Maritime Trade Operations (UKMTO) recommend vessels stay vigilant due to increased maritime risks.
- Iran is prepared to potentially close the Strait of Hormuz, equipping it with anti-ship missile systems, fast attack boats, naval mines, and shoreside missile batteries, which would significantly disrupt the world's petroleum liquids supply.
- Despite the heightened threats, commercial vessels continue to navigate the Strait of Hormuz, with daily average traffic of about 114 vessels as of June 2025, albeit with increased caution due to potential disruptions such as Iranian proxy group attacks, mine usage, anti-ship missiles, and electronic jamming.
