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Insurance Firms Reject Risk for Passage Through Strait of Hormuz Amid Rising Tensions

Insurance companies are refusing to cover the risks associated with vessels transiting the Strait of Hormuz, citing current uncertainties that make coverage impossible until the situation is clarified. This comes as Iranian officials report damage to over a dozen ships in recent weeks due to the use of illicit routes.

According to the International Desk of Webangah News Agency, insurance companies are unwilling to accept the risk of ships passing through the Strait of Hormuz under the present circumstances. Oscar Cicali, CEO of the U.S.-based NSI Insurance Group, stated in an interview with Al Jazeera that none of the insurance companies his group collaborates with are prepared to cover the risks of vessels transiting the Strait of Hormuz.

Cicali warned of a potential escalation, noting the current deadlock and halt in the Strait of Hormuz. He emphasized that insurance coverage for ship passages will not be available until the ambiguities are resolved.

This development follows reports from Iranian authorities indicating that more than 12 ships have sustained damage in the past two weeks for using an illegal route. This route is often referred to as the southern corridor of the Strait of Hormuz.

©‌ Webangah News, Mehr News Agency, Al Jazeera

English channel of the webangah news agency on Telegram
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